I think you're on the money there. Copyright was originally intended as industry regulation, a way to prevent larger book publishers from just copying a smaller publisher's book on day one and flooding the market with their copies. It's applied to many more industries than just books (good!) but also to a wider group than actual publishers (bad!). When someone running a massive free ROMs site gets taken down, that's probably reasonable, they're playing the role of a publisher there and unfairly undercutting the competition (although the penalties in the US are still absurdly steep, as they usually are for individuals in this country). But when someone gets attacked for posting an image on social media, or streamers have to worry about the music playing in their games, or ISPs have to enforce against downloaders of pirated software, or modders have to be careful about linking their mod in such a way that no original code is included, that's not what copyright should be.
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