If this only affects name resolution then what is stopping file sharing app devs from adding a direct IP option? I think eMule and eDonkey do this now. With a distributed system where each client caches their own contacts IPs this would only serve to make file sharing invisible.
So, this bill would make a mess of legitimate use and hardly stop file sharing. It would harm torrent searches, but I can see that dropping back to older tech (news groups). Come to think of it, this could be a real boon for file sharing.