ThePirateBay.se et al are simply filling in on market demand created by the utter absurdity of treating digital data as if it was a can of tomatoes or a bag of crisps.
The absurdity is that we are consumers not customers. We have no rights except the bare minimum. We are sold on the dream and yet we will all experience a rude awakening (this part is never advertised).
The recent HN post about xx comes to mind. http://news.ycombinator.com/item?id=4504851
Admittedly it's not music and I'm not familiar with the pirating in that arena, but it seems to me that pirating is a more complex beast than most people paint it.
It is called Free _and_ Open Source Software, it is the intersection of the two groups, and it is a pretty useful group to think about when you want to be inclusive and avoid word definition collisions with the word "free".
Different names results in different ideas.
But just so we're clear, it is possible to talk about FOSS itself (the software) in a meaningful way. It's not like the term is oxymoronic or something, in fact, the two descriptions are nearly redundant when it comes to describing the rights you get as a user, which is what you should be concerned with as a user of the software.
Why shouldn't we apply this to projects as well? I guess the questions I would ask to clarify the point are: 1) What do you call a project that would like to empower users with software freedom but would also like to embrace the development style of Open Source? 2) Given that there are so many projects out there that embrace exactly that combination, shouldn't we have a name for that?