Libraries have allowed millions of people to read books without paying the author per read,
That's true, but there is a limited number of books in the library, and they only lend each copy out to one person at a time, I'm sure some publishers see it as lost sales, but I think it's long since been incorporated into the business model, and doesn't count for a large loss.
museums have allowed millions of people to look at art without necessarily paying the artist per view.
However, The artist, knowing that the Museum will be profitting off his work, sells it at a premium... a lot more money than he could sell to an individual who casually likes his work. Also by making it public he can possibly then make money from selling prints. It's an established business model that everyone is aware what is going to happen going into it.
Movie rental stores have been around for decades,
Rental stores don't buy the products at normal price, again they pay a premium price for it. Some companies may not like rentals, but at least it does bring in some money.
It could be argued that it is naive to think a musician or a game company deserves money for each download, and that getting a copy of a song or game without buying it deprives the author of revenue.
You're right that every download doesn't equal a lost sale.... but a chunk of them do, and it is significant enough to cause major problems for their old business models. Also this is different from your other analogies, because in almost everything else you said you are talking about temporarily having a copy, with pirating you have a copy to keep that doesn't remove it from anyone else.
The Humble Indie Bundle more or less works off this concept...
But remember when the stats for the the first HIB came in, a substantial number of copies were pirated... for something that was almost free, many many people still thought it didn't deserve any money.
The only paid content I think should be downloaded for free are covers and adaptations of other's work. If the people who made the cover or adaptation didn't originally make what they produced, they don't really deserve any profits from it.
You do realise that when people release a cover of a song, a good chunk of the money goes to the original composer.
I remember a guy from Merciful Fate saying that they made more money off Metallica releasing a cover of one of their songs than they ever did from selling their one copies.
I think the composers share of the profits is more than the performers.
I know it takes a lot of money to make movies and video games, but how much could it have really cost to make Sony Vegas 10 Pro or Coral Paint?
That is an excellent point, some companies grossly inflate prices because they are a market leader. (Read about the difference between Geforce and Quadro graphics cards... same hardware, massively different prices). What many producers of creative software do though is release free versions, or not care too much about home users. The advantage being if you learn how to use their software then when you work for a company they're more likely to buy the software you're trained in.
That is an example of where personal pirating is actually good for a company.
A really clever businiess model is the one Epic does with Unreal Engine 3. Anyone is free to download all the software to make a game with it... you can even start selling your game, and you don't have to pay Epic anything until you're profits go over something like $50,000, then you start paying them a share. Genius method of encouraging large scale adoption/market dominance.
Let's say I go to the park and sit on a bench....
Ok, I like you Zarxrax... but seriously, this is the dumbest analogy I've ever heard, it sounds like you've come up with some crazy cognitive dissonance to justify pirating to yourself.
Lets look at the models.
Benchmaker: takes 2 days to build a bench... needs ~$300 to cover his time and make his work worth while. He uses $50 of raw material. He sells his bench to the council for $350. Done! If he can keep the supply and demand balanced he now has a successful business.
Game studio: Needs 2 years to make a game... needs ~$20,000,000 to cover the expenses for all the staff and outsourcing. They can either 1) Sell one copy of the game for >$20,000,000 and that owner will then probably let other people have a shot on it. or 2) Sell the game at a much smaller price, but aiming to sell as many copies as they can.
Which do you think is the more realistic business model? (I'll give you a clue, it's not the one that's analogous to the benchmaker)
(before anyone gets pedantic, I'm lumping the development and publishing sides together for simplicity)
How does DRM affect the quality?
If you're talking about convenience, then yes, sometimes pirating software is more convenient than buying it... which is where companies go wrong... as soon as you make it more convenient to buy it legitimately then you make it more appealing than pirating. A great example of this is Steam, it's sooo easy to buy games on there, and not have to worry about installing them or typing in codes, or having to update them, and there are tons of nice user features, like achievements. Without Steam, PC games would be in a lot of trouble.
There are some good arguments in this thread... but there are many more people who have an inflated sense of entitlement, and seem to be doing some amazing mental gymnastics to try to justify it to themselves.