Actions having consequences is not a problem. The real problem is the extent of the consequences.
Someone compared illegal downloading to going to a record store and stealing CD's. Even though it's a horrible analogy, it actually serves as a great example of the consequences. Imagine a kid getting caught with a backpack full of CD's. Everyone's seen High Fidelity, right? If you haven't, go see it now and stop wasting time browsing stupid shit on Internet. Anyway, what do you reckon are the charges the kid faces? $250.000 or up to five years in jail? Yeah, sure. In reality, he a) gets slapped in the face b) pays a minimal fine and if he's really lucky, not even getting a mark on his record. So please, stop comparing illegal downloading to stealing physical albums from a store. It's a crap analogy in every form and you know it.
Someone also mentioned the general attitude towards pirated software on this forum. We all know an engineer or two who uses cracked plugins. How would you compare a kid who illegally downloads fifty albums to an engineer who produces fifty albums with thousands worth of cracked plugins? What do you think is a proper penalty to such an engineer? And more importantly, where are the people who'd sue these little fucks who are the real reason a metric shit-ton of small and medium level engineers are losing money each and every day?
Please, put it in perspective. Ruining a stupid kids life - at least financially - for being a stupid, ignorant little brat is not fair. I recently lost my driver's license temporarily for speeding. I drove a potentially dangerous speed, possibly risking not only myself but other, innocent people (even though the road was clear of traffic) and guess how much I have to pay? 528€. What makes the pirating kiddie more of a scumbag than me?
And for what it's worth, I buy all of my music. In physical form. I refuse paying for digital download albums (I don't pirate them, either). The only time I actually bought a download album was with Feared's first release, and that's purely because I'm gay for Ola.