Thanks for your question.
The solution part is amazingly simple. Over the years, I've grown used to hearing this be presented as a very complex issue. The solution is to relicense. Licences that were in place before the amendment to the Copyright Act were low-cost, and they covered the waterfront, including all the grey areas. They offered a convenient and I would say a moral way for users to make sure that the things they were using were compensating the people who created them.
The thing that makes it so simple is that behaviour hasn't changed. The unfair copying guidelines that were pushed out into the K-12 system and the post-secondary system were based on the licences. Some of the wording was borrowed from the licences. It meant that behaviour by professors, behaviour by teachers, instructors, and students didn't have to change during that transition. The only thing that happened was that compensation dropped out.
Adding compensation back fixes the marketplace, because it means that suddenly, instead of comparing a free system with a system that has a cost attached to it—any cost—you have a balance, as you use the word, between potential uses. Some cost less and use less. Some cost more and use more.
That's the balance we need to talk about, not a balance that suggests that when copyright is protected, that protection somehow damages students. I think that in fact it supports them in their education.