1. "we both know that taking somebody's work, for nothing, against their wishes, is not cool."
I'm really not sure I agree with that.
"Civilisation is built on mutual respect of rights."
Which rights are you talking about in this case exactly? The only one I can detect from your position is the right to be compensated for your work, which doesn't sound like a natural right at all.
2. Well, my position is that a lot of artists are suffering now, under the thumbs of the dinosaurs (to mix metaphors) you're trying to defend. In the future, those artists (as well as those industry players) who cannot or will not adapt will suffer.
"In your brave new world, The Beatles would have continued touring pub venues and only the lucky few who got to see them would realise how much they stood out from the 10,000 other bands doing the same thing."
But in my brave new world, I actually get to take part in deciding who stands out and who doesn't, instead of waiting for big labels to tell me, and I can rapidly communicate my decision to many other people very quickly. I take a more direct, decentralized stake in my cultural heritage. I find this pleasing.
"religious and aristocratic patronage as a primary 'business model' royally sucked"
I wasn't saying it was great. I was saying that artists adapt to the circumstances. They will continue to do so.
"why the copyright model and the arts have thrived over the last few hundred years"
I neither grant this premise, nor understand the causal connection you present.
"Its why we get to watch 100MM budget movies."
I've found that by my own measure, in the last couple of decades, the quality of a movie has had a generally inversely proportional relationship with the size of its budget. My theory explaining this is that with a larger investment, you need a broader base audience and relatively "safe" content, which translates to bland, soulless, lowest common denominator fare. I'll be happy to see this die.
"It's a bloody good system and it's a crying shame to throw it away just because of piracy."
I really don't think it's a good system at all. Its primary purpose was to promote continued innovation and creation. I've yet to see convincing evidence that it has done so, or that innovation and creation would suffer in its absence.
BTW: Thanks for indulging the argument without resorting to the ugliness that so many of these threadsd tend to devolve into. Even if neither of us convince the other, I find this exchange meaningful and clarifying of my own thoughts. I hope you feel the same.