I agree about the rationalization (dressed up as morality) on both sides of this. Still, the conclusion that seems inevitable is: if enough people do it, it isn't stealing.
Not to be a complete relativist, but it's naive to believe that the way we formulate moral rules (e.g. how we define stealing) isn't historically conditioned. This is a moment when that's visible because conditions are changing faster than our rules. The rules will have to change. As with all such changes, some entrenched interests will lose. That the record industry turns out to be the loser this time is, for anyone who knows how they've comported themselves in the past, a feature not a bug. (Yeah I know I'm repeating myself and that the latter bit is irrelevant to your point, but on this subject I can't help it: the karmic comeuppance is just too tasty.)
Not to be a complete relativist, but it's naive to believe that the way we formulate moral rules (e.g. how we define stealing) isn't historically conditioned. This is a moment when that's visible because conditions are changing faster than our rules. The rules will have to change. As with all such changes, some entrenched interests will lose. That the record industry turns out to be the loser this time is, for anyone who knows how they've comported themselves in the past, a feature not a bug. (Yeah I know I'm repeating myself and that the latter bit is irrelevant to your point, but on this subject I can't help it: the karmic comeuppance is just too tasty.)