The thread seems to have served it's purpose, so as the OP I'll offer my conclusion.
1) Is copyright incompatible with technology? Nope. Sure, piracy will always exist, but as it is pushed further underground, so it will become rarer. Authorities will be able to use legal and technical means to achieve this.
2) Is copyright incompatible with democracy? When combined with technology, yes, copyright will be damaging to democracy. Authorities will be able to use the laws and technology developed to combat piracy, and will apply them to reduce freedom of speech and the free exchange of information.
So there you have it. We will have copyright in a 1984 state
