If you have a solution that is a decent and fair plan that both acknowledges new technologies and the possibilities that they bring AND the rights of the rightholders to be fairly compensated and to reasonably punish/recover from wrongdoers, I for one would be interested in hearing it.
Here's the thing about copyright in the digital age. For software, music, videos, the marginal (per additional copy) cost is zero. Now, given that it takes no effort to copy it, and anybody can do it in his own home (or his parents' I suppose), how can you realistically stop that, without invading everyone's privacy? How can you even really know that they're doing it? Same thing with downloading it: the only way to know is to invade the privacy of the people by monitoring all their transfers. And even then, it's an imperfect system. How do you know what they have the right to down/upload? How do you deal with authorization? What about false positives? False negatives?
Also, your argument about how it's a regressive wealth transfer from the poor to the wealthy is a bit off-track. If the government(s) imposed a tax on everyone that was used to compensate artists for the creation, it will most likely be nowhere near as draconian as you make it seem. It's not like the government will charge a flat tax on everyone. Presumably, like other "progressive" taxes, it will be charged at a percentage, based on your ability to pay. Thus rich people will pay more and poor people will pay less. There will most likely be a group who pays nothing into this at all, like with income tax. Also, is it really a transfer to the wealthy? I know when you think of artists, you imagine the pop sensation of the day who has millions and millions of dollars, but there are still lots of "starving artists" out there.
You're making the issue too emotionally charged by using terms like "regressive wealth transfer from the poor to the wealthy", which a lot of people emotionally oppose. But it's not really like that.