I can't say I'm happy having to pay a $.30 surcharge for DRM-free, but at least they're no longer requiring "all or none". It's given me the opportunity to cherry pick and redownload songs that have been lost for less than it'd cost to re-buy.
In addition I've upgraded some favorite songs that I've wanted to put on an mp3 disc I spin in my car. I've done it, but I hate burning a 128 DRM file to a CD then ripping it back on to my computer -- a pain in the butt, waste of time, and ultimately for degraded sound.
Besides, for months I've been buying from Amazon (they have some fantastic super-cheap deals-of-the-day) so I figure those savings way offset the added expense at iTunes. That said, outside of exclusives iTunes will not be getting much of my business back. I understand that AAC is supposed to be better, but the more widely usable mp3 format better serves my usage. And for must-have music, CD is still the best of those three options.