I agree that essentially 'stealing' music does hurt the industry and all the peripherals that go along with it to a degree. But the industry at large is pricing itself into a slowly-approaching oblivion if things don't change to a fairly drastic degree. Something akin to my belief that free-agency is proving very detrimental to professional sports slowly but surely.
However, not every area has a Best Buy handy to get those new releases for $12.99~$14.99 the day they come out. And aside from pricing concerns what about rural areas whose only real outlet for new music is their local Wal-Mart? I absolutely refuse to buy music from Wal-Mart anymore as all they carry are the edited versions of those artists that they will still, in fact, carry. I am old enough to decide for myself what I can/can't or should/shouldn't listen to and I'm responsible enough to make those same decisions for the kids - I don't need the largest retailer on the planet making those decisions for me.
The music industry isn't doing anything to particularly endear itself to the average consumer and I certainly have no difficulties seeing how the various P2P networks have become so widespread. Napster eventually lost it's fight. How many completely free networks have sprung up to take up where Napster left off? Kazaa, WinMX, BearShare, the list goes on and on.
Regardless of the individual's feelings about file sharing it isn't going to go away anytime in the foreseeable future, I wouldn't think. Good or bad, right or wrong, human nature dictates that if there's a way to cheat easily accessible then that road will be taken by more than a few. Just an inescapable fact of life.