More IP protection... WHY?

This is an excellent rant from Ed Felten's blog Freedom to Tinker, where he asks something that has been on my mind recently. Why is Hollywood complaining about the evils of movie downloading, when profits are at its highest levels ever. Why are we told that there is a problem when the money is coming in? People are still buying DVDs and going to the movies, I haven't met anybody who says "I think that I will download this movie and watch it in a crappy little screen instead of going to the movies". Let's face it, those who do that will almost certainly not go out anyway.