Also, with software we can empirically look at the history of IP law and see that a huge amount of software that is fundamental even today was created before any sort of software patents were awarded (and presumably, before those people ever even considered monetizing software through government-protected monopoly on distribution).
I think it requires a naive and backwards view of human psychology to assume that money is the sole or primary incentive to create quality music or software. In fact, I surmise that anyone capable of producing top notch content would discover a way to do so without current IP protection laws.
When will you make it? In the evening when you're off from work? What about my marriage? My kids? They all have to suffer because people think they have a right to my effort for free?
Meaning that they probably have day jobs and don't produce as much music as they could if they were able to work at it full time. This may or may not have anything to do with piracy, but I think the point of fewer digital goods being produced is one to consider.
The same digital technology that makes piracy easier is what made it possible for baddox to find them in the first place. It is hard to imagine solutions to the problem of music piracy that wouldn't also make it harder to find these musicians. After all, music piracy has become easy because music is easy to copy and distribute... which is also why it has become easier to find the niche musicians you like.
Suppose you're right (though I don't think you are) and we successfully clamp down on music piracy so that these musicians can more easily monetize their small fan bases and spend more time making music. Does baddox care about this music if, in this alternate world, he never discovers them?