If you think that's step 2, then all you'll be doing is playing whack-a-mole as the MPAA/RIAA will either sue hosts out of existence, or strong-arm them into implementing something functionally identical, or worse than ContentID.

The MPAA/RIAA aren't stupid, and they can smell money. Hosting firms have money. Users uploading infringing content to a service gives them a stick to beat the hosting firm until money falls out.