It's not just the cost factor. Some people believe that by merely paying for an internet connection and downloading Kazaa, that they somehow have the "right" to do this. Believe me, I've had this discussion with a few of my filesharing friends many times. By this logic, I should be allowed to drive my car at 150mph, simply because I can.
I think these lawsuits are assinine, but let's be brutally honest here. These folks got caught stealing. Period.