Because none of those pirates will ever buy tickets to your concert, or buy your t-shirt, or buy your next release, or contribute to your kickstarter, or pay in all the other ways a fan can once they become fans through piracy.
All you can think about is one way to make money and get mad if people don't give you money that one way - even though some people can't because your record label won't sell it to them in their country. And are people who buy used CDs pirates, because they're not paying you either?
I can turn any link to my website into infringing content simply by changing uploading different content to the same address, thereby making anyone that links to me a criminal. So go ahead and make linking illegal. It'll be fun.
Yes, but it's likely that someone will always control cultural influence - either the current gatekeepers or the gatekeepers of tomorrow. That control might be temporary or intangible but it will always be worth something.
There is still another aspect where they retain control and can do so even with the internet and that's directing masses of people to be interested in their product over any other product. This fight is a great example.
In a world where everyone can publish without a gatekeeper, the prize goes to the person who can get the most attention.