I like the idea of what you're proposing in a Utopian sense. And I think on a one-to-one basis, few readers would fail to appreciate the logic and moral force of what you're saying.

But because we are not addressing readers on a one-to-one basis, I think we lack a plausible argument. As I said, I think the public's attitude is: it's our problem (publishers' and authors' problem), and it's up to us to solve it, either by making something they want but can't steal, or find some other way to finance our literary activities (cue dreary and impractical suggestions about going on tour and selling t-shirts). They honestly don't care how we solve our problem; they just don't have a stake in the outcome. 

(I know there's an argument that they *do* have a stake, that through selfish and illegal actions they will be starving themselves and the world of future literary output by depriving authors of income; but in a world where only a tiny fraction of books make any commercial impact anyway, I don't think the public feel there's a danger of a shortage of new books, and if they think about it at all they might consider it not a bad idea if the number of books currently being pumped out was winnowed down quite considerably. Instead, as per my reference elsewhere to Macmillan New Writing, there will probably be more books released by the major publishers than ever before, given how cheap and easy it is to e-publish. I am sticking to my guns on the cheapness of ebook production, but I acknowledge in advance you don't agree with that!)

When I read the phrase 'people who love books don't steal books' I am forcibly reminded, again, of the home-taping issue and in particular the slogan 'home taping is killing music. And it's illegal.' The slogan, and the message behind it, I think it's safe to assert, were ignored at best by the decent and indecent alike, and at worst roundly mocked and parodied. Why should we think we have more of a talking point than the music industry had in the eighties? Is our public an innately more considerate and civilized one than Duran Duran's? I wouldn't like to depend on it, especially after reading the publisher-directed bile on many a blog and comments page over the past couple of years.

I take your point about inferior digital copies. I think that will change as time goes on, and the technology is refined, especially as ebooks tend towards one dominant format.