Can't the server detect and prevent repeated downloads from the same IP, forcing users to act accordingly?
Although they refer to IP ranges, the same principle applies on a smaller scale to a single IP address: (1) dynamic IP addresses get reallocated, and (2) entire buildings (universities, libraries, hotels, etc.) might share a single IP address.
Aside from accidentally affecting innocent users, you also open up the possibility of a DOS attack: the attacker just has to abuse the service from an IP address that he wants to deny access to.
Then it only takes one bad user on the same subnet to ruin the experience for everyone else. That sucks, and isn't working as intended, because the intent was to only punish the one abusive user.