I do not think that filesharing is wrong. I do agree that artists should get compensated. But, I believe that the recording industry is not making enough effort to make filesharing pay for the artists.
First of all, it's been found that the artists who are hurt most by "illegal downloading" are the most popular. The independent and more obscure artists actually GAIN from filesharing. So clearly, banning filesharing does not help all artists.
Now then, the recording industry is fighting this war calling for the bannination of filesharing. That's not been going so hot. The thing most people don't recognize is that this same fight that they're fighting parallels the beginnings of cable TV, radio, and other media that has become common.
Currently, artists are not getting compensated for the trading that goes on. But, according to the EFF, there are ways that we can make it work. For instance, here in Canada, there's a levy on blank media, such as tape or CD. Because of this levy, the courts here have ruled that filesharing constitutes private copying according to our Copyright Act and that it is covered by the blank media levy anyway.