i may of missed another person making this point, or they may not have made it in this thread, but the graph could also be seen another way. When I was a kid you had to buy an entire CD for $15 - $20 even if you only wanted one or two songs off the thing. Now I can get those one or two songs for only S0.99 to $1.19 and skip the other songs, that has to hurt the income to the RIAA and labels.
As for piracy problem I can see why it's rampant because many may feel like not waiting, I'm of the group that believes that blu and digital prices are too high to warrant my replacing old DVD's and yes even some old VHS's of movies(at least so long as the VCR still lives). Until the video players wear out or the movies die I'm sticking to old formats. I also can't get behind an ebook that costs more than a paperback since I have no real rights to it.
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