Not true . I totally agree the industry has to innovate, and they are moving along toward that end, however glacially. However, I also think humans are just self-indulgent animals. 
I think the piracy issue is almost separate. It's a pervasive problem that equates to theft because it's there for the taking. Stats prove that when Napster/Limewire were shut down, sales only jumped 5-10% on the online music sites. You can say it proves your point that regulation won't end piracy. Conversely, it also proves that the industry is losing 5-10% sales to piracy and also that the rest will probably not pay at any price more than what they are paying for their download ability, since that would be added expense.
If the fast internet is $50 a month and filesharing service is say $20 a month. That's $70 for pretty much every song/movie/TV show/book ever published/produced. Even if those products were to drop 80% in price, there'd be an incremental increase of possibly another 5-10%. The majority of downloaders aren't going to pay at any price because free is available.
One prime example is the Daily Show from Comedy Central. That show is broadcast on cable then released to the web FOR FREE the next day. Still there are people putting it up the sharing net sans commercials because they can. And I think my buddy told me the download stats are staggeringly high. This is the same for several other shows on Comedy Central and other networks.
Obviously those shows still make money because of cable and ads, so the piracy has no effect on it. No DVD sales etc to worry about.
I'm sure you believe in IP rights. And yes, while innovation is only going to come, we also need to shut down/curtail the theft that is brazenly going on because it's outright stealing in your face style.