I bet I'll lose a ton of karma here, but...
What's wrong with teaching kids about respecting copyright? I agree completely that the US system is far from perfect, but we do have copyright laws on the books, and they're there for a good reason.
Most artists are not rich. The ability to control their music, pictures, paintings, designs, etc. allows them to pay bills very much in line with the ordinary Joe. It's a job. They should get paid for their job, if their work is in demand.
The Internet generation seems to think that if you can touch something, you can have it. I've started to see that 'entitlement' thing that the older folks keep talking about. Stuff on the Internet is not necessarily free. Sure, there are plenty of people who do make their songs, pictures etc. available for free legitimately. Why not download that? I'm betting it's because much of the time, it's not nearly as good as the paid-for stuff.
More people should be taught to respect copyright; even if it only leads to a change in the laws on the books (specifically, I hate the lifetime+70. Far too long.). But illegal downloading really IS stealing. I know that's an unpopular view, and the cartels have done nefarious things trying to enforce the laws, but it remains a fact.
And as to the fair use argument:
1) Fair Use is an admissive defense for copyright infringement. Meaning, you don't get to do something because it's fair use, you do it and if you get sued, you make a case for fair use.
2) Fair Use generally does not encompass making copies of something to give to someone else. It also does not encompass putting complete or majority portions of a work, say, online for review or critique purposes.
3) People should be able to make backups of CDs and movies (except for the lousy 'decryption' provision), and even shift between media.
But let's not pretend that downloading something you don't own or have license to use is somehow OK; much less Fair Use.