This means that the creators of those goods would not have an incentive to continue creating them, and society would lose since it would have fewer inventions, etc.
That is simply false. There is still the incentive for the enjoyment of creating, becoming famous from creating, selling live performances, donations, etc. There are people that wish to create but can't because you can't use characters from existing works for fear of lawsuits. So it seems to me that even though there will be some discouragement to some people there will be encouragement to others. Which outweighs which? Do you have anything to offer aside from your gut feelings?