I simply don't buy that this is like copying a $1 bill.

And I don't think you do either. I think one could construct a suitably objective test that would relegate certain instances of this sort of fraud to the civil courts where I think they belong.

Part of the problem is conflating the private Spotify ecosystem with "the system" writ large. In any event, a civil case with appropriate punishment would serve to dissuade others from taking the same action.

What does adding a prison sentence accomplish?

It's like copying a $1 bill eight million times.