That's mostly for show. The impact of their recent measures on the population pirating stuff is next to zero, and that even if they jail someone you'll get 10 new streamers on their place.
It was the same thing with the alleged seizure of people streaming for TV boxes. (Mine still works fine, by the way.)
If not for Rudeus' monstruous mana pool they would be all dead. He kept a water wall against three heads dragonbreathing the group.
...hard to talk about this episode without giving spoilers on what comes next. (The LN equivalent is vol12 ch9, by the way.) The fight was exciting, and it ended in such a sorrowful note (Paul is dead, Rudeus lost an arm, there's something wrong with Zenith). A rollercoaster of emotions, really - and it shows how much Rudeus evolved, from the distance towards his Earth parents to the concern about his new ones.