In the presence of an all knowing and all powerful government, the most logical government is socialism, with capitalism merely as an arm to provide inner mobility among classes and to handle non-essential/unimportant matters of society. Our economic system is basically a sham ever since we went off the gold standard (not that that didn't have its own problems), and creates non-existent wealth. However, because there is an excess of many resources/capability of production in today's world, we should take advantage of that. In America alone, there is no reason anyone should starve or be homeless.
In a world full of corrupt, uneducated politicians and bureaucracy, I'd rather see as small of a government as possible, only large enough to keep corporations in check. However, I am against a single corporation dominating an industry, and even a two way split is far from ideal because it kills capitalism. The same applies to government, a two way split between the parties is a horrible situation. When capitalism works, it is because of the forces of valid competition, and competition stagnates when fewer competitors are left. One is obviously the worst, but two isn't much better.
Software piracy will inevitably win out. While I don't care much what happens to entertainment (they can just learn to make things cheaper so they retain profitability), essential needs, like software development in general, should be government funded. Return to the ways of mama Bell and add a tax onto every citizen's bill that goes to funding software R&D. Software will then be available for free, since it's development has already been funded by the government, and there will be no need to pirate it. (or rather, no differentiation between pirating or otherwise)