Your right, technology doesnt alter the labor of the artist. What technology has done, is eliminate the way you profit from that labor.
Until the law and the governments catches up.
You seem to think P2P file sharing will go on without interference, but there's a lot you look over.
1) The same technology that allows encryption, anonymization, etc., can be countered. For hackers we have anti-spyware, anti-virus, etc. For those who say "you can't stop piracy", would you take the same attitude and say you can't stop viruses and hacking, so why bother with a firewall or a protection suite of software?
YouTube was able to setup filters to keep out porn and to disable copyright violations. That type of tech will only get better. All that has to happen is for the detection and prevention algorithms to get good enough so it becomes very hard for the average person to pirate. Then this becomes like locks--locks can be broken, but they are there to keep the honest people honest.
2) The Internet still has limits. China has a huge firewall, for instance. You are dependent on both the limited number of ISPs, as well as the major backbones. Laws that require the ISPs to monitor and filter can be put in place. And the ISPs know who you are.
3) They are regulated by the governments. There's a lot of fights to keep the Internet unregulated, but I think we'll see more restrictions. They'll probably remove the state tax-exceptions on e-commerce for major retailers. Even if they don't react to piracy, they will react to so-called "real theft", that is, embezzlement and hacking into credit and bank agencies. I'm just waiting for a "9/11" style event, on the Internet--either some prank that takes down half the Internet traffic, or some big theft or massive viral infection, with the results bringing more restrictions.
10 years from now I could see a more restrictive sub-net of the Internet, where you'd have to be registered and protocols enabled so they can have "very secure" transactions, and if you don't agree you can't use those features.
That;s a possibility, and I think even a probable scenario. I think the people who engage in piracy might help bring that about faster.