The war against illegal file-sharing is like the church's age-old war against masturbation. It's a war you just can't win.
The crystal ball has a question mark in its center. There are some fundamental choices to be made. We will either choose to continue to wage a hopeless war to preserve the existing architecture for copyright by upping the stakes and using better weapons to make sure that people respect it. If we do this, public support for copyright will continue to weaken, pushing creativity underground and producing a generation that is alienated from the copyright concept.
But, like all metaphoric wars, the copyright wars are not actual conflicts of survival. Or at least, they are not conflicts for survival of a people or a society, even if they are wars of survival for certain businesses or, more accurately, business models. Thus we must keep i mind the other values or objectives that might also be affected by this war. We must make sure this war doesn't cost more than it is worth. We must be sure it is winnable, or winnable at a price we're willing to pay.