Why a World In Which Movie Piracy Were Legal Would Have No Drawbacks Whatsoever

And the statistics you're not considering:

Number of Hollywood movies that would be made: 0
Number of unemployed people as a result of legal movie piracy: a whole lot! (1)

(1) because all the people working in movie studios, movie studio theme parks, movie theaters, video rental places, mailed video rental places, etc, would all be out of work.

The death of the coal mining industry in America caused a lot of unemployment too, but the world was better off in the end.

Although, this wouldn't necessarily kill Hollywood. They could actually accept reality and update their business model accordingly. They probably won't though, since they haven't figured out how already.