If you sell digital goods that are to be consumed in analogue, there is only 1 copy. Get the best price for that 1 copy that you can, because once you've sold it, it's as good as everybody's. Alot of work goes into recording music, I know that, but you can't fight reality.
Hmm. In fact most people's issues was based on convenience. I can't remember where the survey was I read, but essentially the statistical conclusion found that the main reason for Napster et all, was simply that at that time people couldn't download (and pay for) music easily. Which was true, I remember it being a nightmare. You couldn't pay for it even when you wanted to. Yet when iTunes kicked in, that all changed.
There will always be piracy, but I think you'd be surprised at how many people are willing to pay as long as it's an easy process. Digital actually gave more avenues for earning. The world versus one country's record stores.... not that those really exist anymore.