The matter with the student wasn't that he possessed 1 million mp3's but that he created a search engine that allowed the various students that were on the campus to locate any shared files including mp3's.
That pretty much sucked as Grokster and Morpheus were not held liable for the uses of their software and this student was.
THe RIAA wants to stop file sharing of music and as is is not illegal to possess a copy of a song that u do not own the only way that they can curtail this trend is to stop the "illegal" distribution of copyright material via law suit which unfortunately they are allowed to because digital media is not considered in the same context as analog media.
Analog media may be copied as per fair use and as long as it is not sold...ie competition with the RIAA, may be traded ro given away. This is why a radio station may transmit a signal and have it copied by the listener and not invoke the RIAA's wrath.
Digital media is relatively new to the consumer and hasn't the growth period for the political landscape to understand what it truely is. The RIAA has taken advantage of this and basically snowballed the government into believing that a mp3 at 128kbits is an identical copy(perfect replica) of the analog song and can be replicated indefinately with out quality loss.
As anyone with a good ear can tell u a 128kb mp3 is NOT identical to the CD quality song and is much closer to the quality u would recieve from the radio.
In essense the same rules that applied to cassettes should apply to mp3's but since the RIAA have gotten there first we poor humble music lovers will have to wait and hope the polliticians finally get it right.