Just to clarify - the intellectual property I own is patented, not copyright, so fair use doesn't enter into the picture with the kinds of intellectual property I own.
In general, I think the fair use copyright doctrine should be expanded, but the original napster was about the in toto copying of music without any remuneration at all going to the artists. Now if an artist was OK with that because it led to fame and fame led to the ability to sell out concerts and selling out concerts led to money in their pocket, well good for them. But that doesn't mean that other artists should not be able to profit from the distribution of their own work.
The real problem with napster was the large scale and ease of the theft and how until the lawsuits started, to the average Joe, it seemed like there was nothing wrong with what they were doing. It was on the internet, and if it was on the internet, it had to be OK, right?