Well, that's certainly the image the motion picture industry is painting, but it doesn't hold up when one considers the fact that copy-protection schemes ultimately impede the paying consumer more than any pirate.
By pirate I mean someone who takes product for which they have not paid, to have and/or enjoy in a manner for which the distributor normally receives payment.
Which has nothing to do with copy-protection schemes; for my purposes someone who purchases a DRM-equipped copy of a work has paid their money and may reasonably make personal-use copies for playback on other devices. I'm talking about people who just take what they want, for free, no purchase involved - and no right to the works they're taking, either.
When "pirate" is used to refer to us, the general public, is it not appropriate to take issue with the term?
This is a smokescreen. When we talk about 'piracy' we are talking about free and/or illicit distribution, and everybody knows it. And knowing that, it is not appropriate to take issue with the term, on the pretext that it's really only legitimate license-paying home users making backup or cross-platform copies, that we are talking about...
Would we all not benefit if the motion picture industry embraced the growing dissemination of digital content,
Depends upon who "we" might be.
If "we" means people who want valuable stuff, without having to pay for it, just 'cause we want it, then yes, I guess that "we" would benefit from cessation of copyright enforcement.
If "we" means creative artists and investors and crew personnel and studio administrators and distributors - that is, the "we" that does the work of making the valuable stuff, and earn our livings at it - then no, "we" would not.
rather than pouring money into fighting a losing battle against the consumer?
It's not a 'battle against the consumer;' it's a battle against theft. The fact that it's largely consumers perpetrating the thievery, doesn't alter the fact that it's the thievery being fought.