It certainly seems possible. If this is to be avoided, a balance must be struck between the rights of content producers and the rights of content users (I loathe using the C word in debates of this nature), but neither side wants to give an angstrom, despite both trying to take a parsec.
There are arguments to support each side, but not enoughto push solely either agenda. Yes, content producers deserve to be compensated for their work. Yes, content users deserve to timeshift and spaceshift. No, The Man does not deserve to be compensated for sitting on his ass intimidating both content producers and users. No, not all of the 260 million CD-Rs sold in the past year are being used for audio, but, yes, some are, and some of that audio was downloaded, through both more and less authorized means.
The RIAA and MPAA are cartels, and should be dealt with as such. The only differences between them and the stereotypical drug cartel is, to our knowledge, they don't kill people, but the ability to buy anything with enough money is a very sharp double-edged sword....
I would like to think that warez (or rather OSS, as it's inherently harder to kill, and (currently, at least) perfectly legal) and filesharing will keep freedom alive under the corporatocracy that may arise, but with such things a Palladium and its ilk on the way, even that may not be possible. If you've read 1984, you know the implications of this already. Barring nuclear war or a sufficiently powerful and high EMP detonation, we may be the freeest we'll ever be.
Pick a regime:
Let the downvotes begin!