Perfect point, SS. I know a lot of excellent musicians who work their buns off to put out a good sound and get very little for it. One that I know is not only an accomplished artist, but a good organizer as well. It cost her over $30,000 to put out her first CD. She got about $1.00 per copy out of the $16 the distribution system sold it for.
I can see both sides of the argument. Like what happens all too often in our system, it just looks like the producer is the one getting screwed, again.
At first, I thought this might be an interesting economic perspective on the issue -- but you're right, the writer only takes into account the cost of a CD and reproduction.
And, as for making a Lexus (or whatever brand it was) for $1000, I think that patent infringement would come into play.
It's still just stealing.
I don't know what the recording industry should do to combat it. Maybe there's a germ of truth here that the price of a CD will have to drop -- with the necessary drop in the price of talent.
I don't like, myself, the suggested solutions of examining everyone's computer. Hope there's a better (and still capitalistic) way.