I agree with you but we are not there yet. This “racket” is being done fairly through the legislative process. To change that, it’s up to those who see differently to prevail through that same process. If outright theft hadn’t been a major issue to begin with, the encryption software wouldn’t be there in the first place. Everybody has their reasons.
Here's how I would do IP reform if we are to get back to the spirit of Art. I, Section 8 ("To promote the progress of Science and the useful Arts..."). I would start treating IP as a unalienable personal right, like free speech, instead of like real estate. Patents and copyrights would rest with the original creator of the work and would no longer be transferable in any way. IP rights would last no longer than the lifetime of the creator. If you want to exploit my idea, you have to make ongoing arrangements with me for as long as there is profit in the idea.
On the artistic side, such a reform would pit hackers against artists, instead of against "faceless corporations". IP owners would have a much improved moral standing in resisting piracy.