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I'm not sure how anyone could ever think that people will open their wallets wider once they know they can get something for free. It's some kind of twisted rationalization to justify theft. I don't even know if those freetards even realize how silly their logic is.
The honor system won't work for the purchase of digital goods, because most people have no honor when they realize there's no consequences for their actions.
The answer is at the ISP level, with a la carte bandwidth. If someone wants to download hundreds of GB per month of pirated content, then they should have to pay for it. These people will get away with piracy, but the cheapskates will be cut out of the equation.
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