So what is the core of your argument? That the memo was not politically wise? That is manifestly true. But it says nothing about whether or not it was right on the merits, or even whether or not it was "shockingly sensible." As far as I can tell, it was all three of those things. If you don't agree, I'd really like to know why.
No! (Well, besides ratcheting terms back). That's the thing I'm trying to point out. If, like me and I think a lot of people, you think that the 2 big problems with our current copyright regime are (1) ordinary people are under constant threat of being bankrupted by studios for availing themselves of the most convenient access to a TV show or movie, and (2) that it's dangerous to start a consumer Internet company that deals in media, then these reforms meaningfully solve none of those problems. But at the same time they manage to be inflammatory to the content industry: exemptions for remixing rights-encumbered songs, punitive measures for mistaken takedowns, and slightly but not meaningfully increased costs of litigating infringement.
Ah, well there's your problem right there. I don't think the two problems you cite are the big problems. Those are merely symptoms of the real problem, which is that content providers are promulgating the belief that copyright is an entitlement rather than what the Constitution actually says it is: a grant. All the other problems flow from that fundamental mistake.
