Online piracy is also just copying, right? The right holders never lose their product?

True. Once the cost of duplication is removed, which is what their business model was based on, they had to find new ways to profit.

If a band wants to be paid money for playing music, they should perhaps actually play music?

My view is that if you post content on someone else's server and accept their terms for doing so, it is your problem if they then do something else with it. No one is forcing anyone to supply content, they are doing it for fake internet points.

If a company uses my image to make me look bad, I'll sue them for defamation, but it's got nothing to do with copyright.