The problem with whole this debate is that almost all parties have bought the RIAA's view allready. This is simply wrong.
The so called problem with P2P sharing of music files lies in the inability of music industry dinosaurs to adapt to new technology. They are tossing their legal weight around to stop Earth from spinnig. First they didn't provide legal alternative to purchase music in digital format at reasonable price. They are stuck with their old physical distribution channels. Then they declared that some questionable profit loses were caused by this Internet thing and point a finger at minority group ("illegal" music file sharing compared to legal music sales).
Apple has recognized the business opportunity in online digital music and created its iTunes Music Store.
Most people are now "pirates" not by their own choice. There simply is (was) no legal way to use technology at hand for a certain purpose. If you provide fair offer for the market demand, people will respond to it. As all artists will tell you, real problem is not being pirated, it's beeing forgotten. This works well with O'Reilly books that are available online - their existence increases the sales of paper books (great books that is).
So the answer is to give people chance to buy digital music online, and they will do it. Music industry only needs to provide quality of service and comfortable ease of use. Those are attributes that music shared on P2P networks often lacks.
That is the way to go. Please forget about general tax for the music dinosaurs now! This goes mainly for EEF - I had higher opinion of you!!! It is allready issue of civil liberties, because certain group with power (to deform legal environment) is trying to use government against the general public in the name of their sustained might and revenues.
Only hope is that more people in music industry realize that there is also fair way to do business. Let me cite that Wired article mentioned in the text above: "The fact is, P2P is a likely distribution channel for our wares," says Jed Simon, head of new media for DreamWorks Records. "If we're going to be intelligent businesspeople, it behooves us to understand it."