A really great discussion about the future of the music industry, passed on to me, that i am passing on to you. sure, it's a little long, but very engrossing:
http://www.npr.org/blogs/monitormix/2009/11/to_pay_or_not_to_pay_q_a_with.html
I'm glad I didn't get a job at a label, that's for sure. But it's true, the system's broken. BUT that doesn't mean there's no future. The live experience will always be something people will want (and pay for). And even if music-as-commodity comes to an end, and streaming music will replace it, vinyl has proved it has staying power.
Also, I really connected to part about loyal fans paying for anything an artist does. Lord knows, I may not have bought Ted Leo's albums, but I've paid for 15 shows, and own two of his t-shirts and a hoodie. Plus I bought his last album cause it came with a bonus EP. I'm a sucker for that shit! But only if it comes from him. AND I only got into him cause I didn't pay for his music in the first place. I don't see an ethical dilemma here. I feel like the actually music is just a marketing tool to get people hooked on a brand (the artist) for life.
Anyway, those are my thoughts on the matter.