"I think the current copyright situation lets citizens do pretty much whatever they want"
Share a song with some friends, create a mashup of two cool songs, use some music in a short film they've made, make a collage of different drawings, write new lyrics for an existing song and record that, use samples from an existing song to create something new etc. etc.
I think the current copyright situation lets citizens do pretty much whatever they want and prevents corporations from infringing on creators and IP owners. That, to me, is perfect.
Corporations, for their part, went a little further than they had to with the DRM (which had nothing to do with our copyright system) and are finally starting to come to their senses.
I'd say the whole thing is working very well.