This means you cannot start your own personal web site to sell your own homemade music even without paying these guys for a patent right to do so. Am I reading that right?
You are not reading that right. As others and I have said repeatedly, this guy did NOT patent the idea of selling music over the Internet. He invented a form of DRM to protect music sold over the Internet.
and now anyone using a computer watch to sync over the Internet has to pay me because I thought of it first even though I didn't do anything with the idea and I didn't even describe in exact detail HOW it would be done.
This guy clearly did describe how to implement a form of DRM, and he claimed it as his invention. Totally normal and perfectly acceptable.
You're describing techniques that already existed at the time. The use of separate keys for encryption/decryption, even when one is embedded into the encrypted material, have been around for a long time. What is the purpose of encryption? To ensure that the recipient who decrypts it is the person for whom it was meant. This is the same principle that simply applies to online music. The idea was around online and elsewhere in many varying forms before he simply tweaked it to apply to online music accounts. This patent is still overly broad and only uses concepts that existed well before in a slightly different way.
Fine, point us to something even remotely similar to what's been patented as defined in the claims of the patent. You simply saying "it existed at the time" doesn't cut it. You need to actually show proof that something similar was done back before he filed in 1999. And while you're trying to find it, keep in mind companies like this group collectively could have easily spent a little bit of money to find prior art and then ask the patent office to reexamine the patent. They didn't, and I think Apple might have lawyers who know a bit of patent law.