I think you're underlining one of O'Reilly's points rather than disproving it:
I believe the friends of your son have their ripped cd-collections precisely because of the fumbeling of record companies. Their fumbeling and disrepect for consumers is what causes the ripping of content in the first place (often by persons quite a bit older than 11, not to mention the insiders making content available before official release dates).
The result of the increasing hostility in tactics from RIAA and similiar "organisations" force people to change sides:
- a 'light' example: buying a cd just to discover it will not work in the audio systems (in the car or at home) because it was "protected"...
- a 'heavy' example: anybody aware enough to be scared my industry-backed propositions such as TCPA/Palladium/LaGrange ( http://www.cl.cam.ac.uk/~rja14/tcpa-faq.html ), these are driven by the "RIAA version" of the copyright issue.
The record and movie industries are slowly asphyxiating trying to choke the rights of their consumers, not realizing that the neck (consumers) supports the head (themselves).
This has gone on for quite a while, so long that disrespect for said companies has become a norm in most parts of society. Norms are more powerful than laws, which do you think a kid would intrinsically follow? So your kid has hopefully learned that norms are not to be followed blindly (and maybe that the same applies to laws?).