Zaikesman-
The number of CDs produced is a red herring--its the number that are sold that counts to the artist. And, I think "like" is part of the moral equation, at least to the extent I was using "like" as shorthand for "being part of the universe of consumers who would pay for a particular recording"--i.e., a sale.
Pretend you could not copy CDs. Say for CD X there is a market of 1,000 buyers. Say you are one of the 1,000--you bought it and you like it. The artist gets royalties on 1,000 sales, right? Doesn't matter if there are 1,000,000 produced, right?
Now assume you can create perfect CD copies. You are one of the 1,000 who buy the CD and, again, you like it. You buy it, copy it, and resell it. Presumably the person who bought it is one of the 1,000 as well. So the artist only gets royalties on 999 sales. Now say instead of just you, everyone who buys and original does what you do. Now the artist gets royalties on only 500 sales. *That* is why I say it is morally wrong.
[I take your point about resale, but think about it... You buy the CD, don't make a copy because you don't like it, and resell it. The artist still gets royalties on all 1,000, because you aren't one of the 1,000 who would pay for the album. No harm.]
That being said, I was a kid and did what you were talking about--I bought cut-out LPs and promo copies (which don't generate royalties for the artists) and made tapes for friends, and they made tapes for me. But, this is a digital world, which changes things a bit in my mind. First, you can make exact copies. Second, you can make a lot of them. Third, it takes no time. This means that, unlike before, copyright violation is now possible on a massive scale by Joe-Bag-O-Donuts. In aggregate, I tend to dislike the idea that massive copyright violations will impact new artists ability to get recorded and be introduced to the public. Even if you don't care about the legality of the thing, think about the impact on music and artists if everyone behaves in the manner you seem to be advocating.
With all that said, I think the better solution is probably for the recording industry to adopt a business model that is more in tune with the times.