I was serious about that. If it needs an overhaul, how? If the people hurt by these claims want to hold Entura responsible, they are able to. There are several examples of the EFF helping people do exactly that.
The idea behind the DMCA is that the host for content does not need to be a copyright lawyer to host something. Almost any proposed change would require the host to determine the line for what is an is not Fair Use, which is at least a somewhat blurry line in a lot of cases. The situation with these videos, as I see it, is that Vimeo received a complaint from Entura, a company it had worked with before, that videos were infringing on their copyright. It seems like a safe assumption that next time the result will require a review, given the publicity this event has gotten. All in all, that seems like its working like intended.