I agree with you. I don't feel sorry for the record labels. I do however feel sorry for the artists. They're the ones getting screwed while the labels hold on to their dying industry for dear life.
The artists are actually doing just fine. They've always wanted to free themselves from the labels. If you're an artist and you can figure out distribution and marketing on your own, all you need is about 1000 loyal fans to make a decent living because you keep most of your profits. It's not as easy as it sounds, but at least it's freedom and what's more important than that?
