Is there any insight into how much of that $200 million is related to the ridiculous number of requests?
I have no sympathy if the industry agreed to take $128 million and has only now discovered that wasn't enough. Serve them right for screwing up their estimating. But if the government initially said "Reckon on about 10,000 requests per year", or something to that effect - that's a different kettle of ball games.
Really, the obvious solution is to allow - nay, require - ISPs to charge a processing fee per request (where "a request" is defined as applying to one account/user). That would dis-incentivise agencies from huge trawling expeditions.