Assuming pirate connections use encryption, how can Verizon tell the difference between piracy and legitimate downloads? How do they know that "torrent" isn't

Assuming pirate connections use encryption, how can Verizon tell the difference between piracy and legitimate downloads? How do they know that "torrent" isn't actually videoconferencing, online gaming, remote desktop, or VoIP? For that matter, there are plenty of legitimate torrents -- when I last played World of Warcraft, for example, Blizzard was using Bittorrent to distribute updates if they were above a certain size threshold. I also download Linux distros over torrents -- a small way I can give something back to the creators. Also, it bothers me that a private company would be able to cut off the one wire bringing freedom of assembly, freedom of speech, freedom of the press and freedom of association into the home, with no oversight and no appeal process.