No, you are missing the same point in the same way.
Copyright does not guarantee you get paid for every copy. It only prohibits others from making copies without your consent. It is presumed that you will not give your consent if you don't think you are suitably compensated, but you might.
When taken literally, that means one cannot format-shift without the rights holder's approval and the rights holders can demand payment in exchange for letting someone do that.
I am not saying it isn't the case. What I'm saying is that it is unfair and abusive when applied to the reality of the modern technology and so must be changed (as is happening now) and the changes should not include the right for the copyright holder to demand compensation for format-shifting (as is seemingly happening as well).
Also, I disagree with your idea that the artists are somehow incurring a loss because of this change.
They have never been paid for the format-shifting before, when it was happening illegitimately, so, if they won't get paid now it is only maintaining the status quo.