The entire purpose of copyright was to serve as an incentive for creators to add to the public wealth of knowledge and art. It was mutually beneficial: they get public protection for their work, and the public receives high quality art.
The primary purpose of copyright was to ensure that the creators could profit from their work for a reasonable length of time, then the work would enter the public domain so others can use or extend it. I agree that current copyright laws don't serve that purpose very well; the concept needs to be modernized to accommodate corporations which can exist for hundreds of years as well as individuals. More like trademark than copyright.
an algorithm to convince people to lower their expectations
I suspect that's exactly what his algorithm does.
enabling the machine to 'learn' and hence propose higher potential matches
A good example of what you refer to is known as Donationware, basically an honor system where you get the content free and legal, but you are also politely asked to pay what you think it's worth to the author or donate to a worthy cause.
It's a nice Utopian solution to distributing IP. But as far as I know there have only been a few content producers who have been able to make a living off it, and even they don't seem to stay at it for long.
FORTRAN is not a flower but a weed -- it is hardy, occasionally blooms, and grows in every computer. -- A.J. Perlis