Michael Arrington has a great post in TechCrunch on "The Inevitable March of Recorded Music Towards Free". Most interesting is both the large response and the highly negative nature of some of the responses. I wrote about this subject under the title of "The Future of Music" a couple of years ago, partly inspired by an article in Wired about MySpace.
I completely agree with Michael Arrington, and I am surprised at the reaction of some performers. I expect that a performer would want to escape the clutches of their record company, who seems to feel that it is their right to keep 90% of their artists earnings. The fact that groups like Radiohead are escaping from their contract and planned to go free shows the way forward.
It is worth remembering that the Recording business is relatively recent. Big recording companies have only existed for 60 to 70 years. They came into their position of power by controlling the means of production, first records and then CDs. Now that they are no longer needed to reproduce music, they are irrelevant and should just fade away.