Seems questionable. You can cover almost everything with a handful of monthly subscriptions these days. In fact I often pirate things that I otherwise have access to via e.g. Amazon Prime.
> but who is going to finance the creation of new content if everything is just reliant on completely optional donations?
Well this is an appeal to consequences, right? It's probably true that increased protectable output is a positive of IP law, but that doesn't mean it's an optimal overall state, given the (massive) negatives. It's a local maxima, or so I would argue.
Plus it's a bit of a strange argument. It seems to claim that we must protect Disney from e.g. 'knock offs', and somehow if we didn't, nobody would be motivated to create things. But then who would be making the knock-offs and what would be motivating them?