"You can't stop pirating with legislation and litigation, but you can recapture losses by having a more flexible business model that's willing to accept less than the ridiculous cash cow popular music has been in the past few decades."
I think this is precisely the right point.
Just because you don't believe in a law in NO WAY exonerates you from not following it, but that said, I think that most people would agree that the system of Music distribution we have today causes problems.
Here are some things I think would happen if the internet was successfully regulated (which will never happen, by the way, unless we decide to stoop to totalitarianism or some overarching system of human regulation. but I digress)
1) A whole lot of people will listen to less music, and get alot less media exposure. Paying for things over the internet, or at stores, or wherever, may not be a bad thing, but consider this- I buy CDs only when I know I'm getting a bang for my buck. If I wasn't able to sample downloads, or go on youtube, or whatever, then my intake would go down.
I don't think its a stretch to say that there is a potential that overall sales would indeed go down.
2) Piracy would move elsewhere. Piracy, as everyone has agreed, is not going to stop, and trials like these merely galvanise the already pirating.
This controversy will only calm when music companies realize that if you can't defeat the beast your best chance is to join.