The law says very clearly that people who have their copyright violated are harmed, so that won't get your anywhere. You're right, the problem in the law. Trying to fix the law by making the police not enforce the bits we don't like is a recipe for an even more complex legal system.
Who specifically suffered because of this - not even the hollywood studios should be thinking this is bad - I'd like to know. To make arrests/raid homes for these sort of 'crimes' people should need to prove harm (rather than assumed harm) which funnily enough is nigh on impossible when there isn't any.
There is far far more harm in the raids than in the original crimes - that's how far gone the law is at this point.
