Re: Short term 'fix'
A lot of the streams are via AceStream which is really just a torrent which downloads in order as much as possible so you can watch it "live" (about 30 seconds delay). Displayed usually via VLC using the network stream option.
The other ones are HTML5 or flash which just show in the browser. (With a million adverts on top) I think most of the Kodi plugins use this method.
From what I have read you need a special plugin for AceStream which is not compatible with all hardware on top of the already special plugins you need to watch the illegal content via Kodi.
There is two things that can be blocked, the web page or server which lists the streams. (A good place to start), or the actual streaming servers for the flash content.
Either of those should have a significant impact on the low lying fruit, the people who just bought a box with no idea how it works. Nothing is going to stop the VPN.