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Yes, I read that point the first time you made it, I just didn't find it particularly insightful then, and certainly less so on a second reading.
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Well, read again, mate.
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While we are strongly committed to the vigorous enforcement of intellectual property rights, existing tools are not strong enough to root out the worst online pirates beyond our borders. That is why the Administration calls on all sides to work together to pass sound legislation this year that provides prosecutors and rights holders new legal tools to combat online piracy originating beyond U.S
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Clearly the Administration is saying that it can't get to rogue sites who operate totally outside the United States . You should understand that in the Megaupload case, some of their servers were located in the US, thus giving the US government jurisdiction. If none of the foreign sites' operations are in US territory, the US is powerless to take action against them in court.