Look, the "dividing line" is simple - something like this is a simple bootleg, somebody had a tape and slapped a logo on it and got it out there. It's not a "record", it's a found object that somebody gangstered out to the street. End of story.
The other stuff, the PD stuff, not the same thing. By the very nature of its origin, not the same thing.
But it is settled legality in your part of the world. That horse done left the barn.
So the only decision that you, the consumer, has to make is a simple one - with any given product and what has gone into it's "production", am you getting value added or spending money subtracted? Seems to me like there's a lot of suckers getting suckered in that regard, but so be it, it's your money. And the ongoing devolution of the quality of the products (250,000 CDs on one diaper pin!!!!!!!!) speaks more to the lackings of the participants than it does to the rightness of the intent of the laws. After all, "freedom" is only as noble as the people exercising it, so if you buy crap, don't blame people when they keep selling it to you. Free market, baby, free market.