Seems like a fair solution might be limiting damages on pirating movies that aren't widely available. For example, if a movie isn't available for streaming cap damages at $2.99 or whatever the going rental rate is.

I don't see why there should be any damages paid out if something isn't available to stream. How can you claim a loss of sales for a product you aren't even selling? Why why should anyone be rewarded for not providing a product and just sitting on it so nobody else can use it? There certainly isn't any excuse for not being able to bring a product to market fast enough when it previously was already on the market and there are plenty of services to license it for streaming or sale.