The doctrines underpinning IP law are flimsy and arbitrary. It's normal for technology to change the balance of power (and the laws that enshrine that balance).

In the current environment, Hollywood's business model is unreasonable, and people know it. Until people think it's reasonable, a lot of them are going to pirate. Technology has changed. Hollywood needs to change.

What should be illegal, is threatening to sue someone for working on code with others.