What you're saying is true but not justified. The reason the industry has changed is because it's gotten easier to STEAL. We, the musicians, shouldn't have to accept that our music will be stolen, thus having to abandon retail as reliable revenue.
So average industry albums sell about 30k or 200k if they are lucky. But these albums get 2 million downloads.
Would you rather sell 200k records or get 2 millions hits to your website and get 5-10 cents a visit for a free album?
Artist/Labels will benefit from being the direct supplier wither is paid for or free.
You need to know your fan base and if you have a secret fan base that is stealing form you then how do you know where to tour at?
If you are the direct supplier you will know where where to tour/sell merchandise
I have downloaded plenty of albums for free but if I respect the artist and love the album I will pay to go to the show.
At the end of the day Rapid Share and Host file are making more money of music then the actual artist due to ads and pop ups so artist need to be their own host companies.