Hahaha. Sorry, I have to laugh. You are here in a technology forum and you are using an argument from the 80's.
Look back-in-the-day when people didn't know what this new fangled electric box was for I can see the argument, but this is the year 2010 and we understand computers and digital assets like software and music and images have value.
As for your new business models, why do you think everything is going toward advertising. Because it is increasingly difficult to pay for content and software so the only way to make money is ads to convert to hard goods.
Is that the world you really want, where everything is about ads?
Look, software is like your phone or your car or your clothes. If you want it, you save up for it and buy it. Are there poor people? Sure, but they save up for food, cars and everything else. Isn't it convenient that the one thing people never seem to have money for is the one thing they can most easily steal? What a coincidence.