CD sales requires that the shopkeeper pays a for the CD. DVD sales requires that the DVD be paid for. Absent IP protection, CD and DVD sales will go close to zero.
The Nine Inch Nails CD made ~$1,000,000 dollars even though anyone could have downloaded it and burned their own copy. That means that the sales were mostly from people that wanted to support the band. If there are several different stores that have the same CD but only one of them is paying royalties to the band, most of those people will buy it there. The store can have a contract with the band to ensure exactly that. The official website could sell it there directly. I've laid it all out for you, there's nothing left to argue about.
If the cost of the move to an IP less world is that you lose the movies and the games and the big research projects, do you think the tradeoff is still worth it?
Yes. However, as I've explained to you several times now, all of those things are still possible and we won't lose them.