I think this is way more reasonable than the original fine, however punishments are supposed to fit the crime.
Had he walked into a store and physical stolen a box of CD's, and then handed them out, it would of been theft under 5000? and a slap on the wrist?
I would think on a scale of things thats bad, download/uploading something on p2p is as bad as speeding on a highway? Which is usually punishable by a few hundred dollars fine. maybe thats just me.. but when you look at all the offenses, and their related punishments, I don't rank minor copyright infringement much higher then speeding or shoplifting. Which are bad, but not world ending bad.