I encourage you to take advantage of our product in any way you see fit, as long as you use it in ways that are not, in the words of Dr. Laura Schlessinger, "illegal, immoral, or fattening".
Perhaps Jonathan brought up "Dr. Laura" just to be funny - but in reality, she's a good illustration of the underlying problem. That women has some very controversial ideas about what should be immoral, and by extension, illegal. Society is stuck trying to find a balance between her views, conflicting views of others, and what to some extent it may be possible to agree is logically fair or just.
The situation with copyright and "file sharing" is actually fairly similar. Here you have something that is pretty much illegal under current law, however is considered moral by (according to recent polls) perhaps a majority of the population. Shure, the industry will go and on about 'property rights' but ultimately a copyright is not physical property - it is a social construct. And a much, much more powerful one that it was when the idea was first conceived. Powerful copyright may be the law of the land, but it's tough to be a copyright enforcer when you discover that your own mother is innocently trading files with her friends...
Some sort of balance is going to have to be achieved between industry and consumers, cost and availability before this issue will die down.
Of course there mere fact that something is not considered immoral does not mean the law will be changed to permit it - look at speeding. Most places, it's fairly unsafe to drive on a highway at the speed limit, as everyone will be flying past you. Yet the limits remain what they are, and we count on selective enforcement to keep the system somewhat workable.