When one of us in school bought Billion Dollar Babies by Alice Cooper it was copied onto cassette by no more than half a dozen friends, generally the people you taped things for were those who taped things for you, so still a lot of original vinyl was bought, then often if you liked a tape you would buy the original album anyway.
If I buy St. Anger by Metallica then make it available to download from a website, millions of CD sales could be lost, some will like it and buy the original CD, but it is a different scale altogether.
One difference is that you wanted to have proper vinyl with substantial cardboard sleeve artwork to collect rather than a cassette copy, nowadays downloading digital music files onto a CDR complete with sleeve artwork to print, the difference between a copy and original is minor unless you are a devoted fan.
I prefer to buy originals, particularly in hi-res SACD or DVD-A.
The fuss is nothing new as you say, Home Taping Is Killing Music with a skull and crossbones over a cassette logos on LP inner sleeves, the argument was that if you don't buy the original, record companies won't make money and won't invest in new artists, existing artists won't get paid, whole thing grinds to a halt.