Better product does not matter, advertising and network effects do.
Think about this: with IP you have strictly more options than without. You can literally release under public domain if you want to. People generally don't.
Having strictly more options is always better _by definition_. You're literally saying people will be better off if you take away their choice. Stop and think, man.
2) Don't ignore a point you don't like. Tell me how a small creator can compete with a big corporation. Take into account marketshare and network effects.
3) You were unspecific because you can't control it and you know it. With IP the artist can decide if the money offered is good enough for permission to use his work. Without IP you shift the decision how much to pay entirely to the people with money, artists have 0 say. They can only say "please" and "thank you".
A) How now? I don't see creators giving away their work for free under public domain, citing it's better for them.
B) Ok, let's come up with a system which rewards creators, builders, workers in other professions.
C) Like what?
So what are those alternatives except "give away your work for free and hope to get paid next time"? Because this one is already possible today and creators don't use it because it would suck for them.