Sigh... people are so dogmatic about copyright here on Slashdot, I'll pass on regurgitating arguments about why it is needed, why art is different from other forms of labor, etc. I will, however, submit an alternative to completely banishing it altogether.
The definition to fair use should be expanded. More specifically, a new category of derivative work should be defined: non-transliterated works of significant reinterpretation/artistic value created within the lifetime of the original copyright. Works such as this, The Wind Done Gone, or your average Kirk/Spock slash fiction ought not be hampered, because they don't impinge on the ability of the original to make a profit, and it's a separate issue from false attribution (the two main things copyright is meant to protect). It's often the reverse; the majority of the Japanese pop media allow and may even encourage derivative fan works, under a specific environment, because such works (even pornographic ones) generate more interest in the original.
One proviso would be that the fan creator may not hold copyright over any individual part, only the whole, and that s/he relinquish the ability to make claims against the original creator (in case "official" derivative work shares similarities with the fan work, coincidence or not). It would almost be like a limited GPL... the "changes" one makes has to be open sourced.