In one corner, you have a relatively small company who's entire business is streaming music, loved by many, preferred by many and, until Apple decided to become a competitor, considered by even the biggest Apple fans as one of the very best at what they do.
In the other corner you have a gigantic corporation who has decided to add steaming music as yet another source of revenue to it's ever-growing empire.
The "David" in this particular tale is trying to survive against long odds (Goliath has unlimited financial resources, Goliath's competing solution is default on every iDevice sold, woven into the fundamental music playing app that everyone uses (probably first) when they first acquire an iDevice, etc). The "Goliath" is flexing it's massive muscles and wealth to pressure "David" into submission, killing a free service preferred by millions of our fellow consumers, etc. to, presumably, prop up the appeal of it's own music subscription service.
At another time, Apple played David and Wintel was Goliath. Of course we sided with the underdog in THAT situation. Are we so right... so certain that the David in THIS situation is the "villain" and Goliath is so very right? Sure, the details of this story paints this David in a bad light but think about why they are "punishing" artists. What is the driver of such "punishment"? Why would they take such an action that they know can be PR spun so obviously negative?
Because they ARE evil or stupid? Else, what else is in play here to motivate such action?