Very good article and I'm pretty much in agreement with it.
However, one point I'd add to that, is the fact that the music industry had become far too complacent and much too greedy, especially where products such as CDs were concerned: (CDs cost approximately 50 cents to produce, but at times, a particular product could sell for in excess of 20, and people paid that price).
They had a captive market and behaved accordingly. This was part of the reason for the success and appeal of Napster and co; I've long felt that if the music industry had priced CDs and music more reasonably (and displayed less greed) the lure of illegal and free downloads would not have been quite so appealing.
