I'm not saying this couldn't work, in theory, but I think in practice that the # of parasites has the potential to make such a model unworkable. But maybe not! I'd be perfectly happy if you're right and it worked.
More generally, non-excludable goods do not work well within a free market system. If you want them produced, you either set up a state mechanism for funding them (which many countries do for e.g. film, by creating national film funds), or you somehow make them excludable (e.g. through copyright). The other options aren't really effective.
There'd be a small first-mover advantage for being the first to print a book and smaller operations not worth copying would still operate but J.K. Rowling wouldn't be a billionaire.
No one's disputing that. But she's also creating a lot more value at the same time. It's a wash.
Yes, that's called democracy. Copyright must be a system that is acceptable to most of us. In fact, copyright itself is more "byzantine" than just having the State issue a stipend to anyone who produces a work of art - yet must we be OK with such a solution?
Similarly, Joseph Galambos considered that people who coined words were due a royalty when they were used. Is is unfair that we decide to use that work for free instead?
Copyright is also the tool of open source code licensing. How exactly would a viral license operate when, lacking copyright, the authors have nothing to license?