For chemists, electronics engineers, and medical careers I agree. These are proper science and engineering fields and should remain as they are, more or less.
Things that are not proper science or the application of it though? They're better taught in trade schools or learned on the job. Spending years and thousands of dollars on a degree for them is foolish beyond belief and does no good for anyone except the universities.
The humanities? They're another discussion entirely; a fair number of their degrees have no career path whatsoever outside teaching them to the next batch of students.
Some do but quite a lot of them pay better than you'd think. Plumber, electrician, and HVAC guys all make a hell of a lot more than I did at my first sysadmin job, as do most union jobs. For that matter, sysadmin isn't really helped by having a degree beyond basic coding ability and that can be picked up for free online.
Most business positions have no need of what they had to learn for a business degree. Accountants and lawyers being pretty much the only exception.
Eh, I'm not particularly upset by this request. With a colo server or two, it's quite possible to commit any number of crimes within the borders of a nation that you've never been to physically and have no one acting as a representative in.
Good on Dotcom for finding the loophole but, last I checked, we were big on paying attention to unintended consequences around here and leaving the law as it stands has plenty of them.
There are plenty of unintended consequences to be had to saying all US laws apply to any company with any hardware located in the US too though. This mess needs some very careful wording to straighten out.
I don't really give a happy damn if it entirely kills their market. That's capitalism. Provide something worth paying for or GTFO.
If they're stand-up businessmen, they'll do like you suggest and build their business around providing value on top of what's available for free. If they're douchebags, they'll try to go the legislative protection route. If they're idiots, they'll keep doing the same thing and go bankrupt.
I honestly don't care which they pick aside from the legislative protection route. If they succeed, they get fat wads of cash for being useful to society. If they fail, someone else will be happy to take our money in their place. As long as there's no protectionism going on, everyone who's not either bloody stupid or a greedy fucktard wins.