I don't know what an "appropriate" punishment is for illegally downloading or distributing someone's content, but ten years sounds incredibly excessive unless you're running a vast, far-reaching network, distributing content to a million people and charging them for the convenience or something like that.
Some Average Joe sitting at home, downloading a bootlegged copy of the latest Hollywood movie... I don't know, a $50 fine maybe?
The thing is, the Internet has, and will continue to change, how media can be distributed and consumed. The old model of ticket and physical media sales just doesn't seem viable anymore. I think the media companies are going to need to find other ways to pick up revenue. Advertising in the movie itself, of course, is an option, but I think we're missing part of a bigger picture somewhere.
Someone, someday, is going to figure it out and make a bazillion dollars.