Let's take this metaphor a little further, then.

Digital content isn't exactly like a hot dog, so let's assume that you could design a magical hot dog which, once created, you can copy many times with no other costs. You have an unlimited supply of hot dogs, and each one of these hot dogs, being an exact copy of the original, can also be used to magically make more hot dogs.

Now I'm not saying that this hot dog is free - it cost a LOT in R&D to produce this hot dog, and you invested a lot in it. The other thing is that hot dogs go with buns, and there's sadly no magical buns in this universe. Each and every bun has to be created, and costs money.

So you set up your hot dog stand, selling magical hot dogs with non-magical buns. You charge a premium rate because you're the only guy in town who managed to make a magical hot dog of this quality, and with it's unique flavour. Besides, the buns are still costing you money, and they have to come from somewhere.

Now you notice some guy has found out that the magical hot dog you sold him can make new hot dogs at no cost, but they don't have the buns attached. As a response, you start baking the hot dogs into the bread - it makes it harder to get the hot dog out, and you think that that's the end of it. But the guy realises that with a bit of effort, he can get the hot dog out of the bread too, because what's the point of a hot dog if you can't get at it? Baking the hot dog into the bread is costing you even more, and making it harder for people to get to the hot dog.

Soon you have some people coming up to you and asking if they can have seeded bread, or maybe gluten free, or maybe they just hate bread and want it on it's own. Some of them want to buy just your hot dog and put it on their own bread. But if you start selling them hot dogs by themselves, won't they just start handing out free hot dogs to all their friends? That would be a disaster! So your answer is no! Hot dogs come baked into bread, and by now you've convinced the mayor to make it illegal to take your hot dogs out of the bread. People should just learn to love your bread!

So how's the guy who took your hot dog out of it's bread going? He's still giving away hot dogs for free, and what's worse is that he's telling everyone he gives one to to give them away, too. It's costing him nothing to do because he doesn't have to pay for bread. Sure, some people are still coming to you because they actually like the bread, but mostly the people coming to you are asking about bread-free options, and are still willing to pay. Most of the people going to the guy who's giving out hot dogs for free never bought anything from you, and some of them don't even eat the hot dogs. Sure, you see a few of your old customers going to him instead, but mostly the people going to him either never came to you, or (after tasting the free hot dog) later come to you to buy a genuine one in bread.

The point isn't that the guy giving away free hot dogs isn't a jerk. He is. The point is that you're stubbornly refusing to let people pay for a hot dog how they want it, in a way that costs you less (because you don't have to adjust the price for the bread - you just have to cover your costs, rather than incurring new ones).

You're doing this in an attempt to stop people doing what they're already doing. People don't want to rip you off - they just want to be able to pick their own bread.

To break from the analogy now, I was happily a pirate because it was difficult for me to get what I wanted how I wanted and there was no technical reason why it wasn't available. Sure, if I wanted all my movies as flip-books, then there's a technical reason why that doesn't make sense, but there's no technical reason stopping me from getting them as digital media files.

If I'm looking for music from a band, I will always try to find a legal channel to obtain it first. If I can't find one (and these days, it's getting pretty rare), then I'll probably pirate it. Sure, some people will pirate it anyway because they feel entitled to it, but the point is that many, many people have no problems paying for content so long as they can get it how and when they want it. This type of availability of content is pretty much what TPB seems to be about for many people. It's not about screwing content producers - it's about freedom of choice.

Anyway, that's my take on it. I know that there are people who will always choose to steal rather than pay, but most of society would happily pay if only we were allowed to.