Agreed. I'm anti/pro piracy. It really depends.
Personally since netflix / lovefilm I don't really download anything anymore, because I finally have a cheap alternative. Why spend £18 on a new DVD I will only watch once, maybe twice when I can pay £5 and rent a couple DVDs a month?
The only problem now though is software for me, most software I use is free, paint.net, libreoffice etc, but there are still people selling very simple applications and charging £15 for it. It's nowhere near as bad now as it used to be a few years back, and I think all these new business practices will help push things along in the right direction. But punishing people for downloading a film illegally isn't the right direction.
The vast majority of people who DL things have no intention of ever buying them, if they couldn't get it for free then they simply wouldn't get it. Heck if I couldn't find a copy of office online for free (before openoffice) I'd have just used notepad. Likewise I wouldn't have bought a CD just because I couldn't DL it, and I wouldn't have bought a DVD if I couldn't find it online.
Now though with services like Deezer or Netflix I can actually watch things online for a price I think is very damn reasonable. Hell I'd honestly say I think they're undercharging a little. . If more areas of the music industry realised this then maybe the pirate scene wouldn't be quite as far reaching. If they want to make more profit off of their latest blockbuster film, put it on netflix or lovefilm sooner.