I hope some sort of payment scheme (maybe somewhat like radio) is worked out so that there can be legal downloads that are flexible (the DRM stuff right now sucks). Until then, it's buy the CD, rip it, stick in a box -- over and over again. Oh well. I can wait.
One thing that concerns me about illegal firesharing is that it may very well lead to some unsettling restrictions in 'fair use'. Those of us who play fair will end up with inferior products (CDs that don't play in computer drives, etc.) while someone will crack it and the kazzaa crowd will have superior product. A good example of where this is happened is ebooks. You purchase the product for basically the same price as the printed copy, but you are not able to print (or at least print only very limited passages) while fair use allows the copying of comparitively large portions from the printed text (for legitimate reasons). I would never give the file to someone else (beyond maybe a colleague to browse for a couple of days -- which is exactly what we do with physical texts), yet I'm punished because of others.
I hope that the promise of the internet as sort of a global multimedia library can be realized. It is ok to loan something you own to someone else under certain conditions. I can go down the street and check out some old Louis Armstrong LP's from the public library (although this varies depending on jurisdiction). A few years ago I thought we were going in that direction, but a seemingly total disregard for the copyright holder coupled with an extreme distrust of the legitimate end user has resulted in a pretty severe regression in the quality of the internet in this respect. The solution starts with the end to rampant copyright theft. If users make a good-faith effort, perhaps the RIAA will provide us with a real digital alternative.