>You're not playing fair with your comparisons. In the case of bottled water, you want to count all the costs of making the bottles, filling them, transporting, them, etc. In the case of digital content, you want to ignore the cost of producing the original, and focus only on the subsequent copies.
With bottled water, I want to count all the costs to the manufacturer of making a specific bottle: materials, wages, property taxes, equipment wear, etc.
With digital content, I want to count all the costs to the manufacturer of making a specific copy: none.
I'm not saying that unlimited copying of work is fair, I'm just saying that there is a qualitative difference in scarcity.
I don't really want to argue about what hurts more. I'll just point out that using nothing, or purchasing a license to work A, or purchasing a license to work B, can all be looked at as causing the creators of A and/or B to forego revenue.