Don't be afraid to sue, even if you "look bad".
I was proud of Harlan Ellison going after those posting his works on Usenet. I think there should be some people who fight out of priciple, rather than just economic. He's going after them because the mentality is wrong.
People have to be forced to realize their actions have consequences. The law does enforce going after copyright infringers. Just giving up and stating that it's inevitable is like saying we shouldn't make anti-counterfeiting measures because people are going to do it anyway, or we shouldn't use toilet paper because our asses will just get dirty again anyway.
If people just give up on this, pircacy will become more rampant, especially thanks to the new memetic warfare going on regarding electronic media, the anti-copyright movements, etc.