Except you know, we're not talking about HISTORY. We're talking about NOW. We're talking about the way things work TODAY.
I'm well aware of the history of copyright law and what Disney did. I have my own opinions about that, which are irrelevant to the matter at hand, but suffice it to say, it's a good thing that artists are afforded copyrights for their work. It's a good thing that they're given the protection to own, license, and profit from their own work. It doesn't matter if that's life of the author plus x years or not. Artists deserve to be compensated for what they do, and it's their right to charge as much as they want.
And seriously, what are you talking about with this "digital distribution doesn't cost content creators money?" And remember, we're are talking about video games here, not distribution TV shows over BitTorrent. How can I, as a game development studio, SELL my games for PROFIT through DIGITAL DISTRIBUTION without SPENDING MONEY? BitTorrent? How do I manage licenses? I still need storefront software and pay credit card transaction fees, I still need to provide tech support for people having trouble getting my product, I still need to provide a dedicated seed and download alternatives for people who can't use BitTorrent, I still need to be able to track and analyze download statistics, I still need hardware for all this to run on, and I still need to pay the electrical bill for that hardware. So how is that free?
Nothing in life is free. It's trite and cliché but it's also very, very true.