"The people who put hundreds and thousands of hours into making content aren't the ones who benefit from IP laws. It's the big cartel-ish companies with a zillion lawyers and friends in government who own rights to the IP and pay artists small royalties that rake in all the cash."
hmm..so who gives the big cartels the rights to their music? that's right...the artists. If the artists are getting scraps and you are illegally copying their stuff and as a result, they lose contracts, it's hurting them in the process.
Copyright infringement is not theft, it's closer to counterfeiting. If it's not stopped, the value will eventually be $0 because people will not be willing to pay for it. see: music, newspapers, books, and eventually movies. Its happening to anything that can be digitized.
"IP is not necessary for artists and content-producers to make money. This should be fairly obvious by now after the success of the Grateful Dead, the rise of the indie recording industry, free and open source software, etc."
Free and open source software is a bad example. OSS uses copyright law to protect it from being used in proprietary software. With no IP laws, most big companies would either create very expensive software (so anyone that buys it would not be willing to share it) or they would all go to service based apps (this is already starting to happen).
The grateful dead has had a following for many decades. What about new artists that want to make a living? Bar gigs don't pay anything, so the only real way to make a living is to sign with a recording company. In some ways, sharing music forces artists to go with a recording company, because they don't have a chance at making a living any other way.
After 10 years of popularized piracy (I know it's been available for much longer than this, but Napster mainstreamed it), the youth of today feels entitled to free things on the Internet and are becoming less and less likely to pay for digital media.
This is the danger of piracy and why all of those industries wanted to stop it.
"It doesn't even have to be a problem at all--a smart producer can use copying as an advantage."
I no longer make applications, only services. So the direct result of piracy is that people that normally would have to pay a one-time fee for my software now have to pay me every month.