There are two sides of this issue. On the one hand, piracy of this definition is inescapable. As you say, it is very easy to accomplish, and as I pointed out, it is very simply justified. It is very easy to convince oneself that there is no immorality involved. On the other hand, if the artist is to be able to survive on his art, then he really must be compensated for his work.
Don't get me wrong, here. The system currently in place, the music industry in particular, is a broken mess. The industry stifles progress in multiple directions, and completely incentivizes the wrong things. An artist's work results in a great deal of income, but the artist really only receives a relatively small cut. I suppose that those who are deeply successful still receive enough money that perhaps they just don't care, but it's a harrowing ride for those at the beginning of a career which may or may not get anywhere. The music industry doesn't only treat their consumer base with inhuman disregard, but their talent, both musical and technical, really gets abused, too.
I don't think it's wrong to implement copyright. It does have a purpose: to enable artists to be properly compensated for their work. It's been ravenously abused, though. There's way too much money involved, and the length of copyright in the modern world is outrageous. The continuous push to extend the term further toward doomsday and exaggerate the penalties for violations is an absurdity that needs to stop. You're right about one thing at least: it's harmful on a cultural level.
The lawsuits in particular, I find ridiculous. I'd wager that the music industry has lost a great deal more money as a direct result of their campaign of civil suits (both in paying lawyers and resulting boycotts), than they ever could possibly have lost to the original piracy.
Let's understand something. It doesn't matter what you do. You can implement draconian DRM measures. You can wave subpoenas around like a gun at a bank robbery. You can bribe congressmen until your overt suggestions are made law. None of these things will stop piracy. It's too easy to do, and it's too easy for an individual to justify to himself. You can never stop to piracy. The best that can be hoped for, is to mitigate it. It's better for the entertainment industry to widely express disapproval of piracy, while serenely accepting its reality in secret, than to set about wrecking the lives of individuals via law suits, and dirtying themselves by associating with politicians.
My point is this: Copyright isn't the problem. Those who would abuse copyright are the problem. As pirates and consumers, we're all up Shit Creek here, and while the artists aren't really in the same boat as us, it remains that they're still as lost in want of a paddle as we are. Without the copyright laws, they wouldn't really even have YouTube as an option.