Both should be done. Often the actual illegally hosted materials are on servers not friendly with takedown requests or will get immediately reloaded by the pirates. By going after the links it can cut off the ability for people to find the illegally hosted materials.
Is this like how in France, DNS resolvers are legally required to block certain websites? That's right, if you run "unbound" with default options in France you're a felon.
Seems like a strange way to attempt to police the internet by proxy. The Internet should ignore or route around people attempting to police how nodes connect to each other.