The issue is complicated because of how common the problem is. For example, I am pretty sure all of my peers and most of my family have done it at one time or another.
Additionally, the parties involved(RIAA, music companies, musicians, consumers, and the government to name a few) can't communally decide on what are valid uses for music and what are fair judgments against invalid uses.
If the RIAA had its dream/wish list come true, for example, music would only ever be heard by the single person who bought it.
The purchaser would have no right to transfer use rights to other people upon surrendering said use rights(from the resale of said music for example).
Furthermore, purchasers would not have the right to transfer music between formats(buy the same music in .mp3, on CD, and any other format) nor have the right to make copies for any reason whatsoever(including currently legal uses like backup copies).
I am glad to hear that the judgment has been rescinded and it has been recommended that congress reexamine the issue. While they are at it they should look at software pirating and related intellectual property laws(both copyright and patent) as the issue is very similar in scope.
As computers and technology continue to move at such a rapid pace there is a need to rapidly adopt laws and conventional wisdom on the issues that develop.