The purpose of copyright under the US Constitution, a text relevant to the courts the EFF is addressing here, is to "promote the progress of science and useful arts by giving creators temporary exclusive rights to their works"
It is not to "compensate for the cost of production", nor is it to ensure that business plans of major music publishers happen to be successful.
The EFF is correct to say here that copyright shouldn't be perverted to limiting market competition generally, but limited to protecting a specific works.