First, great post. VERY well said said indeed, esp about piracy vs. the ease of getting what content is needed as a user.
I've said it once, and I'll say it again. I have 0, none, zip, zilch MP3/Ogg files on my server that haven't been ripped from a CD I own. BUT, I would be inclined to do so because CDs are expensive and contain only a song or two that I like.
What would happen if I could go into a CD store, page $10 for a CD containing ~15 songs of my choosing from any artist/label? I would be all over it, and record sales would go through the roof IMHO. Everyone's happy. Always seemed simple to me as a consumer. But what do we know, we're just a bunch of pirates.