OP… “but if the person who made the copy for himself had no intention of ever purchasing the music, how does this become a loss to the artist?”
To me, this comment gets to the heart of the difference between a respectful society based on “doing the right thing” and respecting individuals… an ethical one, and a legalistic rule based society without ethics or respect. The latter, you creep up to the line without regard to doing the right thing or respect for others. So you take advantage of others, and it is ok, because you did not break the law. The law is a poor substitute for respect of others and the source of so much disrespect and conflict.