All existent content is naturally abundant when the cost of duplicating it is fractions of a cent.
Indeed. No-one is arguing that abolishing copyright today wouldn't be good for everyone but the rightsholders tomorrow. It's whether it's still good for everyone next week or next year or ten years from now that is in question.
Your point about the best amateur work today competing with good professional work from a decade or two ago is well made, and it's a sign of how far and how fast technology has evolved in recent years. However, it's also a sign that amateurs now have access to tools and techniques originally developed for professionals a few years ago. You're ignoring that in a world where no-one has any incentive to make big budget productions like Lord of the Rings or Game of Thrones, there is also no budget to develop those professional-grade tools in the first place and nothing to start the trickle down effect.
I think you're also overstating the case dramatically. While today's dedicated and skilled amateurs can make work rivalling professional quality from yesteryear, few amateurs have the time and skill to actually do it. The rest of the time, you get music recordings that are good, but not as good as they would have been if someone had hired a professional recording studio with the right acoustics and equipment. You get the occasional brilliant piece of writing, but you have to filter out a thousand uninspired works of fan fiction to find it. You get a fun film project, but it looks like someone's friend held the camcorder and they ran through a couple of After Effects tutorials afterwards, because that really is what happened. And of course they used After Effects, probably downloaded from a pirate site, to do that, because for the most part the community-built alternatives to professionally created software don't cut it.
As a final point, the growth in capabilities and scale for modern creative projects is astounding. Twenty years ago, a single developer could create a state-of-the-art game, maybe with a little help from specialists on the graphics and audio fronts. Today, a single good developer can still create a fun game, but it won't look like the state-of-the-art, or anything close to it. I'm all for games with interesting gameplay and films with interesting storylines, and I'll be the first to agree that those are more important than the latest big budget effects and a full soundtrack. But professional quality work today can produce all of the above, and no small group of amateurs will ever compete with that, no matter how enthusiastic or skilled they might be or how long you wait.
So I don't think it's self-evident from your valid point about what some today's amateurs can do today that amateurs in a few years would match today's best professional work if we abolished the incentives for big budget productions tomorrow. Star Wars was released in 1977, nearly four decades ago, and today's hobbyists on YouTube are still doing light saber effects. At that rate, most of us will be dead before anyone is keeping up with what today's commercial industry can do.