It's so much easier to copy a digital file than a physical book that I can't see how we can get to a world without DRM.
Sure, Hollywood could change its business model. There is a lot of amateur content available on the Internet the creators of which saw no need to paywall. But a lot of people seem to prefer the stuff that was produced with a big budget and hyped with an expensive advertising campaign, many of them enough to pay for it.
The ethical response should be clear. In the case of computer software, instead of more pirated copies of Microsoft BASIC... we have Linux.
Look at the fan-made videos based on Star Trek. If people can do that, going the whole nine yards, and making up stories about one's own characters... isn't that much harder. We've already got lots of webcomics online.
The movie and recording industries exist, and while they may be unreasonable in many ways, their belief that they need DRM to survive is not unreasonable. I don't think that one can win a fight to tell them they can't have it. But maybe it's time for a movement to harness the creative energy that's already out there in amateur and fan-made work into a movement similar to the open-source software movement that gives people the option of ignoring Hollywood, the same way that Linux lets them ignore Microsoft.