If it's a digital work, the ability of the owner to control the distribution and price is an ability provided by social contract, social constructs, and law. It is impossible to physically limit the distribution of digital works, short of not releasing them at all, so any position that this control can exist in any absolute form is going against reality.

No. Fair use already supports that idea, as in the Betamax case.

No. Fair use does not cover reproduction and distribution of works in their entirety. The Betamax case validating time shifting. You've made an entirely faulty argument.

Time shifting is reproduction. Me scanning a book because I want to read it on my computer is reproduction. Both are prima facie copyright infringements that are justified by fair use. I'm not sure what the legal definition of distribution is, but copyright law primarily concerns making copies.