Playings devil's advocate: There are many ways to incentivise even complex, large scale investment absent copyright. From project finance to Kickstarter, it is well beyond self-evident. On the flip-side, the cost of supressing academic and sciendific knowledge through academic publishers dwarfs whatever entertainment value might come from their library (~12 films)[1]. I think your comments on this are too simplistic.
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[1] Toy Story, Toy Story 2, Toy Story 3; Monsters, Inc.; Finding Nemo; The Incredibles; Ratatouille; WALL-E; Brave; A Bug's Life; Cars, Cars 2
And there are probably other great works that might be produced, were it not for copyright.
No model is the only possible world, and certainly not the best possible world. Different models give you different things.
People figure out how to make a living in whatever system is available.
A world with Pixar movies is better than a world without them.