Ovinomancer
No flips for you!
This is categorically false. In order for compensatory damages to be awarded, yes, financial harm must be shown. But for injunctive relief, only violation need be shown. And, no financial harm needs to be shown for punitive fines to be assessed. Assuming that you can freely use IP for your own derivative work that you release to the public is a great way to earn some punitive fines.Your opinion is fair, you're entitled to it. Also, since I have no idea who you are or what your product is I'm happy that you will act. But acting does not mean that in any given case, you won't have your backside handed to you.
Sure, and if it's in poor light and you can prove that your sales were affected in any way, you will be compensated. If you can't, you won't. I think I covered that with my original post.
Very true, but in order to sue someone you have to take proper steps to best make your case. If taking those steps doesn't result in your rights being upheld then I'd guess that whomever you'd be annoyed at, didn't do anything wrong.
I think it's really important to state that just because an artist feels wronged, doesn't mean the law has been violated. I completely get the vitriol around the discussion of IP because people pour their souls into things but no one legally cares about the work if there's no documented financial loss or risk of future loss due to reputation of the artist being effected.
A casual look at how service providers treat DCMA requests should show you how easy it is to be held liable for even non-commercial use.