if you're a consequentialist then you only care about outcomes. Every economic analysis I've seen indicates piracy rate does not affect the returns to creators.
The main reason I brought up the end game stuff was because the article gave me the feeling the TPB doesn't want Hollywood to exist any longer. They are talking about the people that allow Hollywood to make money as if those people are criminal scum that are just selling plush toys and anorexia. Just thought it was an interesting scenario to consider given the apparently largely negative feelings toward Hollywood's existence.
Probably some portion very close to 0%. It's a hard problem to define without having unfiltered access to everyone's mind. Regardless of what measurement you use, I suspect things like DRM, slow download speeds, slow shipping, bad cinema experiences, etc. have caused more loss in revenue than piracy. I also suspect that for many forms of media (particularly music and software), piracy has been a significant contributor to many producers' success.
Really wish we could get some numbers on this to see if your arguent has backing.
However, it is by definition of US law illegal to pirate copyrighted content, so regardless of whether or not we think it is a benefit to content production and distribution companies for us to pirate their content, it is always going to be illegal.
No, it will be illegal only as long as the majority is of the opinion that it should be illegal.