Piracy is tricky.
People who produce content do have some right to keep other people from stealing it.
Define "stealing" in this context. Because "stealing" patents by utilizing the underlying ideas in more or less spelled out ways in a patent application are the basis of most industries in their foundations. It's only much later is there any real recognition of patents, generally, as companies (and people) feel a need to create artificial barriers of entry to preempt competition.
Now, the case in point is copyright, and certainly there's a much greater view of respect for that field precisely because it is, in theory, supposed to be of a much more narrow scope. But, we're so far down that rabbit hole--the very definition of a derivative work has become so warped and the time span for a copyright to last has grown so large--that the respect for copyright at all has really had a falling out.
It is very difficult to track down individual pirates, so most get away and reasonable fines are not a deterrent. This leads to a sort of reverse-lottery where lots of people take a chance at disastrous penalties.
Which is the problem, full stop. If reasonable fines are not a deterrent, well, they're simple not a deterrent. Sometimes justice and punishment aren't a deterrent. That's life. Strive to correct this in some way only makes the situation worse. I mean, by the logic stated, jay walking should carry perhaps 20 years or even a death sentence. That's absurd.
Part of the problem is that the public is very split on what is reasonable.
A more major part is that those writing the laws are being effectively bribed with money from copyright holders into writing laws beneficial to copyright holders. So, that there is a "split on what is reasonable" is true. But, we live in a democracy, and I'm quite certain that way more than 90% of people are not in the "fine a person into oblivion". Hell, ever time you see a story showing the vast majority of a nation are committing piracy, it's a good sign you should rethink your laws to decriminalize it more, not try to crack down harder on it. That doesn't inherently mean that content creators won't be paid at all--although they may have to come to terms with the idea that even fewer will make a living wage from it. But, it may mean devising another system than copyright to facilitate it.
Some people are happy with any arrangement that industry wants because the purchase is voluntary
Piracy is voluntary too, between two consenting people to copy some bit of data. The rub is of course that it's piracy that's the issue, not whether people are somehow obtaining content from the industry directly without paying.
It would be interesting to see a survey of opinions on this and see how well public opinion matches the law.
See above. I'd say Napster was a good effective opinion poll of a sort. I am wary, though, of how any survey may be stacked one way or another to distort the message people wish to express. After all, most people may feel guilty about piracy, but that doesn't mean they feel they should be punished for it. Self-guilt happens in lots of circumstances which are clearly entirely victim-less, so it's important to not extrapolate unwarrantedly even if surveys did suggest that some sort of fine or whatever would be appropriate.