I skipped past some of the last few posts but I wanted to comment on something:
In a truly capitalistic society, Housebroken Lunatic's arguing that Piracy is superior and companies are just unwilling to admit that they're obsolete would be completely correct.
Here's the thing though, in a truly capitalistic society, the companies wouldn't be able to do anything about piracy. The entire concept of patents, copyrights, and intellectual property run contrary to capitalistic ideals, as they prevent someone who could do the same thing, but better, from acting on that claim, whereas in a truly capitalistic society that "someone" would be perfectly free to reproduce whatever the "thing" is, and the market would decide who did it better, and who gets money from it.
The United States, as you may have gathered by now, is not a truly capitalistic society. My understanding is that it's the most capitalistic society, but between the above-mentioned items and various industry regulations, it's impossible to say that it's truly capitalist.
So, returning to the concept at hand, it's clear that Housebroken Lunatic idealizes a purely capitalistic society, in which he would be 100% correct in such statements as piracy simply being an innovation and artists not having the right to earn money from their art, however the reality in America is that various copyright and intellectual property laws mean that piracy is comparable (not the same but comparable) to grand theft, and that artists have the right to say "If you want to listen to my music, you have to pay me money."
Is this an ideal system? Well no, no system is truly ideal, though I'd argue that a purely capitalist society would not last long, by virtue of there being no (short-term) economic incentives to, oh, figuring out ways to quit dumping so much pollution into the air and water, activities that may well have killed off America by now if innovations in such techniques had not been mandated by the government.