In reality, the record companies are mearly treating us like a bunch of children (which we are, but not in the way they want, hehe). They seem to believe that if they punish us enough, keep saying 'no', we will all suddenly learn to do the right thing. Except, you can take some hardcore warez-addict, who has been upset with the record industry for probably many years, destroy his life and take all his money (possibly throw him in jail) and just expect him to start loving the RIAA again. I know if I actually got sued in this big joke of a campaign, I would never buy a CD again afterwards. That would REALLY sour my views of the music industry to the point of no return.
However, once they stopped going after file sharing programs (Napster, Kazaa, etc) and started going after individuals, I've noticed things getting worse. Now any chat forum you go to will have SEVERAL long threads about this issue with a TON of very unhappy people. Yes there are still some that say "Don't steal from artists" but they generally have quiet voices. There are a HUGE number of people out there who have a tarnished view of the recording world and the more these suits come about, the worse it is going to get.
On a side note, before anyone complains too much about pricing and selection of CDs, watch where you shop. Yes CDs ARE overpriced and generally the selection of artists available is poor, but the bulk of that is the store you buy from. Even Best Buy still has a large selection of CDs in the $10-12 range, as do many small shops. Yet places like Virgin (ie satan) still sell Mott the Hoople for $18.99. If you want to start somewhere in that war, you'll have to go to the stores. They determine the markup and what labels/artists they carry. There are tons of great artists out there that are signed to a label, but that doesn't mean a store wants to stock it.