At last my thoughts on the digital copying issue have finally been crystallised in this statement from Cory Doctorow, in the foreword to
Little Brother:
...here's my pitch on why giving away ebooks makes sense at this time and place:
Giving away ebooks gives me artistic, moral and commercial satisfaction. The commercial question is the one that comes up most often: how can you give away free ebooks and still make money?
For me -- for pretty much every writer -- the big problem isn't piracy, it's obscurity (thanks to Tim O'Reilly for this great aphorism). Of all the people who failed to buy this book today, the majority did so because they never heard of it, not because someone gave them a free copy.