"
Such a situation doesn't make sense in a rational market." Tell that to philosophy majors. :)
I can also turn on the radio and receive music for free, with ads. TPB has plenty of those (but isn't distributing anything themselves, so arguably isn't infringing... Perhaps they are facilitating, but if so they are largely facilitating non-commercial infringement; I can't imagine anyone downloading a movie and selling it would be common). Radio stations usually pay royalties, otherwise they would be commercially infringing copyright. I mention elsewhere that I can sympathize with commercial copyright enforcement.
Non-commercial copyright infringement is harder to value IMHO. In the case of commercial copyright infringement, there is positive income, and the profit can be fought over. Now that we have dropped boxed distribution media and gone digital only for most types of content (and, importantly, I pay for my ISP), the "profit" to the infringer, and the cost to the originator, from any given copy is at best very ambiguous. The profit to argue over could be positive, non-existent, or negative (heck, they might be wasting their life, watching Game of Thrones, when they could be creating value). There is nothing obvious to fight over in the case of non-commercial copyright infringement, except the copy itself (whether the copier had the right to copy). But preventing copies needs a system similar to a cable TV network, not an amoebae-like Internet.
I like the Internet and the ability to speak freely, and to mix what I find, too much to enforce copyright (even my own) anymore. It's taken a long time for me to get here, and I used to want to be a professional artist.