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The point is, that in the future there will be no physical copies of stuff anymore.
Thus illegal downloading will be as close as theft as you can get in the all digital era.
And no, you don't throw people in jail, just like you don't throw people in jail for petty theft/shoplifting for stealing a book or CD. It's a minor misdemeanor that gets a small fine and maybe some community service, maybe probation for repeat offenders.
The law will have to adapt to deal with an era where many types of products are digital only and traditional theft is no longer possible.
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