bathysphere said:um...
... this is bad news for you and me (the consumer), in case anyone misunderstood...
I agree. (It's strange how everyone is taking such a positive view on this when the original article is pretty pessimistic).
Many here have said the consumer has a choice, they don't have to buy from iTMS; and that's true, but consider this scenario:
Let's say you look at the DRM restrictions on iTMS, consider them fair (or at least, acceptable) and start buying music there. You build up a library of a few hundred songs over time. Then Apple announces a change in DRM policy (of its own volition, or forced to do so by the labels): The songs you've bought are unaffected, but any more songs bought from iTMS can (say) no longer be burnt to CD, and you can only play them on one Mac or PC.
(You might say Apple would never do this, but they have the power to change the restrictions pretty much as they choose, and have already done so once).
Now, what do you do? You don't want to buy any more from Apple. Do you buy from another music store? Well then your music won't play on your iPod. Do you buy a new music player? Then your hundreds of iTMS songs won't play on that player. Do you want the hassle of burning all those songs to CD, and ripping them again to the new format? Not to mention, by transcoding you're reducing a low quality audio file even lower.
Many customers would simply accept Apple's restrictions because of the hassle of switching, and this is the problem. Apple are trying to keep customers, not through innovation, but through artificial restrictions to make it difficult for the customer to leave.