How do you price fairly to beat free?
make things available early
Again, how do you beat those that make it available even before you do as I outlined above.
Make it easy for people to do the right thing.
Doing the right thing involves education to know right from wrong. Circumstances can override that education such as the ease it is in getting the content with little to no repercussions for doing the wrong thing.
Remember that pirated copies are almost never lost sales
Agreed, however they are a dent to your ability to realize sales absent the illegal activity. In short, although they can't be counted as sales lost it can be argued that at least some of those that pirated would have purchased it legally had the illegal avenue not existed.
Maybe in the future, things like crowd-funded software and open-source will take over if it isn't profitable enough.
Ah, but open source software relies on the very same copyright laws to exist. Absent copyright, or more importantly, copyright enforcement, open source itself couldn't exist. Crowd-funded seems more realistic to me to overcome that.
same for entertainment. Perhaps live theatre will make a comeback.
It has been a while since I have seen a live theater show. We have them in town from time to time. Worth seeing but it lacks the special effects that draws the younger crowd to the theaters to begin with. Who knows though...