I seem to remember some dark predictions in the late 70's and early 80's about video rental stores killing the motion picture industry. At that time, the average cost of a movie (VHS or BETA) was $80, so it was a bit difficult to build up a decent sized collection. A rental from a video store was one or two dollars, but it also increased the risk of people pirating the movies for their own collection. Now there is a whole market devoted to "direct to DVD" movies promoted almost exclusively at the rental stores. The price of movies to own has also dropped dramatically. Video stores have reached an agreement with the movie companies about revenue sharing and everyone is on good terms again.
What we need to do is develop a system that utilizes our current technology to make (movies, music, etc...) more readily available and cheap enough to entice people away from pirating. I realize that we will never escape piracy 100%, but we can make a legal route that is affordable enough for the general public to say no to piracy. There are already several distribution platforms available to choose from. (Gnutella, Torrents, ED2K) All of them offer the potential for a digital age "rental store." Who knows, this might even bring the "Fair Use" laws back into effect and allow someone to put their legally purchased DVD movies onto a laptop so they can watch them on a business trip or extended stay away from home. You may say I'm a dreamer...