You have a crucial point that you fail to see: those two forms of IP are already distinguished in legal institutions: copyright and patents. the problem, is that both legal institutions are being extended out of control... but the difference is there, and we only need to adjust one (patents) and abolish the other.
But independently of that particular solution, the fact that technological development makes some particular form of social institution or enterprise obsolete is not the problem. If the invention of the wheel made some forms of transportation obsolete, considerations about the preservation or future or pre-wheel forms of transportation should not be valid arguments in discussions about development and deployment of the wheel.
In other words....it doesn't matter. The problem right now is not how are we going to secure that there are incentives for people to invent stuff, but that the mechanisms that we do have in place, that were never created with that intention but also work as incentive structures, are becoming unacceptable threats to the public interest and freedom.
First we need to stop the escalation into police states that the extension of these mechanisms is bringing about, THEN we should let the people that are trying to make money inventing stuff work out how they are going to actually make any.
In other words: the "technological development" argument is moot. it is not going to happen, period. So don't use it to respond to my complaints about my lost freedoms, because i'm being monitored, censored, persecuted, fined and incarcerated NOW, and you want me to worry about the potential profit problem of some corporation in some undefined future. get your priorities right.
As a subsidiary argument, you can reconsider the reasons that were argued in its time for the implementation of IP protection. it was never "let's secure a revenue stream for the author", it was much more a thing of "let's secure the integrity of the produced media for the future, by preventing unauthorized sub-par copies to be made and distributed". That line of thought rests, however, on the direct correlation between cheap copy and low quality copy that digital media makes obsolete.