If every other person in the streets proved guilty of misdemeanors then that still isn’t a good excuse to toss ordinary jurisprudence overboard.

Or to put it bluntly – your arguments didn’t work well for the Sovjet Union, they didn’t do well for the DDR, and they aren’t flying here. Whether 20% or 80% of the free world starts filesharing or not there is simply no excuse to abolish the legal system.

So… how does the fact that Communist China quite literally owns you right now fit into the picture?
That aside what you are completelly ignoring is how much culture the Eastern Communist block created. In that point the only difference from the West was that the authors didn’t become rich. They became well known, much loved, occasionally even acknowleged by the goverment, but not rich. That didn’t stop them. Unlike the mythical “modern artist protected by copyright” who won’t be an artist anymore if he/she desn’t get paid.