I also doubt my ability to contribute anything constructive to this thread :-).
My answer to the question is that yes, it's hard to make money from writing novels, but it has always been so. That's the impression I get from published authors, like the recent post "The Full-Time SF Novelist: Probably Not as Endangered as You Think" on Scalzi's blog, or Stross's "common misconcetions about publishing" series of blog posts. Also Diane Duane's podcast (specifically the one on fanfiction).
For more general glass-half-empty vibes, see "1000 True Fans. I found the original article very appealing, but followups by the same author (and elsewhere) indicate massive caveats as to how relatively few people have made real money in this way.
It may be very disenchanting to find your work on a torrent site, but you can't assume that's why you're not selling.
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