The term “open air prison” was what human rights groups (iirc amnesty international) used to describe Gaza. I dont know of any creditable international human rights groups that have referred to the west bank as an “open air prison” in their reports on the region.
These companies sometimes list their own movies on torrent sites and then record everyone who downloaded it from them. So, yes, they can see what you download if you don’t mask your IP through some proxy.