One ultimately has to conclude that copyright has only one of two purposes in this instance: (1) To maintain an overt tool of political/social censorship, or (2) to maintain tool of abstraction for blood money in the wake of a tragedy.
Is there a third possibility here? If there is, I admit that I fail to see it.
Does the copyright in the Nick Berg beheading video now belong to the Al-Zarqawi estate? Should Abraham Zapruder be able to make the film of the Kennedy assassination disappear forever because he (and he alone) feels that society should not view it?
I certainly don't include Volokh in this category, but I suspect that there are many IP attorneys out there who are so caught up in their profession that they end up embracing the kind of insane social distortions discussed here.