All sarcasm aside, people have always preferred free to paying for something but, the creators of the copyrighted material do deserve to make a living off of their work.
No. They deserve the _opportunity_ to make a living off of their work. They do not deserve a free ride just because they are "creators of copyrighted material". What if their creation sucks? Of course, in a planned economy, your argument would probably have more weight.

In this country, I think it is a better idea to allow competition. Even if that competition sells a competing product for a lower price. Even if it means Kid Rock will be starving in the street because people preferred to listen to local bands at the coffee house for free instead of buying his latest album. If we reject the necessity of competition and consumer alternatives in avoiding societal stagnation, we might as well throw away capitalism and start over.