As a big Metallica fan (my favorite band growing up) I always thought the Napster situation was a little overblown. They found out the I Disappear demo leaked and they sued Napster over sharing an unfinished, unreleased song on their platform.
It was more than that, though. They also sued several universities, purely as a way to intimidate the user base.
It's not like the universities were taking any active part in file sharing, they simply owned the infrastructure for internet access. But the effect of the lawsuits was that millions of students got a letter to the effect of "if we find out you're using Napster, you will be expelled". Mission accomplished.
Imagine being 18 years old, squarely in the demographic to be a long term Metallica fan, and already building that fandom by listening to their music online. And one day you find out that these guys are so pissed about the leak of a track they recorded for a ****ing
Tom Cruise movie that have hired an army of corporate lawyers to lean on your school so that your entire future now hinges on never using Napster again. What impact does that have on your perception of that band's street cred?
In modern terms, that's like Taylor Swift trying to get Spotify shut down because she's pissed about a song that was supposed to be in a Hollister ad. If you want to be absolutely sure that an entire generation of your core demographic sees through your bullshit and considers you permanently radioactive, that's a great way to do it.