That says their error was trying American threats "we got you dead to rights, tell us your income and we'll tell you how much to pay our we'll sue for punitive damages"
Which isn't legal in Australia. They would have been ok if they had asked to send a letter saying "stop it or pay us a reasonable amount for one person viewing the film once" but of course actual damages aren't enough for film companies
They were too greedy.
Is your home machine, your phone, better protected than the VPN servers? I bet you're not as good at IT security as the IT security staff VPN companies hire
If your threat model includes nation state actors, you're best off not using networked computers