I thought this comment on The Guardian website was a pretty good explanation of why the proposed three-strikes rule is a bad one:

The specific problem with FAC, FACT and this government is that they are colluding to (1) turn a civil allegation into a crime, (2) make the taxpayer foot the bill for prosecuting it, (3) impose a summary punishment without an opportunity to argue the case in court, (4) licenses yet more intrusion and snooping on personal internet usage

There’s a fifth point, but I don’t agree with it, heh. There’s also the fact that connections are per-household, not per-person…