I had an argument about this on Facebook yesterday. I understand the law to some degree, I'd hate to go down as a beast cause I was on porn looking to get some relief and clicked a link that had an okay title/thumbnail and turned out to be kiddie porn, and despite clicking off instantly I went down as a beast. Even if you get let off that shit can ruin your life.
Downloading and consistent viewing is inexcusable but like you said it does open up exploitable avenues for the creeps "I just streamed all those videos you can't touch me" so there is definitely something that should be done, but I can KINDA understand this ruling.It just REALLY needs some work now, this is gonna open up a LOT of nasty shit.
In this instance the dude was clearly a beast though and I don't understand it, he was downloading too.