The biggest problems I see with Digital Copyright today is that it is hard to enforce the copyrights and that the legislation around this has not yet caught up with the way that information is shared around the world. The current legislation is trying to apply physical world theft laws to the digital mediums that are more widely used with the Internet today.
I believe that the legislation around the Digital Copyright problem needs to be changed to address the differences between physical and digital mediums.
There is also the issue that the owner of the copyright is not the creator of the content and they owner of the copyright can abuse the copyright they hold. This means that often the legislation is not protecting the people that create the content but the big corporations that buy the copyrights.
The current legislation allowing the US government to shut down websites anywhere in the world that break these copyright laws is outside the scope that they should be allowed to work within. Why should a government be able to give itself the ability to take down content that is hosted in another country?
An example of Fair Dealing is critique. I watch a number of critique type videos on YouTube and it is a fair use of copyright material as it helps the consumer make a more informed choice of what they are buying. There is also a good example of the copyright laws being used to censor this type of content here.
Another example is the use of copyrighted content in research. Almost all kinds of research build on what someone has done so being able to use their content and build on it as long as it is referenced is a fair use of the content.