Yes a VPN will slow down a connection, due to the encrypt/decrypt that happens. Unsure of streamers getting jail time, but I wouldn't be surprised if they start going after them.
Im not surprised that they're logging peoples IPs, it's a bargaining chip should you get caught. It's like vendors on the DW (Especially US), they keep peoples details for plea bargains. The US justice system is messed up, Reefer Madness explains it a lot better than I can, but basically a guy introduced a weed grower/seller to a buyer. They buyer got caught and gave up the other two. The guy who did the introduction had like 10 years or something, whereas the other two had much lighter sentences as they were able to give people up.
Moral of the story, if you cannot do the time, then don't do the crime.