That's a tired and no longer relevant point. His point is that people will pay for the convenience of acquiring media, and then presents an example of when it was convenient to him (purchasing an ebook when the pirated version was sub par quality). However, as I showed in my video example, iTunes (and many other companies) have already addressed this issue, they have solved the convenience part and people still pirate, which shows (to me at least and I would hope everyone else) the issue is NOT acquisition of content or convenience, it's saving money.
Also no I don't think people should be punished more harshly for media piracy, I don't ever want to try and comment on the proper legal approach because I don't understand enough about the law to do it properly, but my basic thoughts on media piracy have been previously outlined here: http://news.ycombinator.com/item?id=3694764
Piracy happens in most cases because it's FREE, this is the #1 reason, the fact that Spotify etc. are finding success should be the absolute proof: Spotify is free (or cheaper, if you pay for a subscription) than purchasing music, that's why people use it. Convenience is not a valid or relevant reason for (most) media piracy any more. There are some cases (such as acquiring the entire discography of an artist or group, which can't be done easily through any pre-existing product) which makes piracy more convenient, but the common use case of media acquisition (a single song or an artists latest album) is not part of the convenience.