It's probably worth noting the horrible privacy characteristics of Ethereum. With the right resources, It's straightforward to track down the identity behind the seeders.
Yeah, this will probably be integrated with AZTEC or some kind of zk scheme before it becomes a full mainnet protocol due to the risky nature of torrents.
I doubt many people have a moral quandary over torrenting. It's like video games with the ease of use of Steam and how game piracy is no longer a big problem since it's easier to just buy them, if there was a simple one-stop shop where I could watch movies and TV shows with one click I would pay for it no problem. I'm not going to pay to jump through hoops and remember 5 different passwords to 5 different services.
This uses state channels for payment which is more secretive than using regular ethereum transactions. To take the cake, the funds can be mixed on tornado.cash or AZTEC or whatever the latest ETH privacy tech is.