The nay-sayers either don't listen to much music, have a hell of a lot of money, or have some knee-jerk reaction to DRM.
I love music. I want to hear as much as I can all the time. I want to hear NEW music, not the same songs over and over again. I don't want the radio to pick it for me (I only trust a couple of DJs to do that). A subscription model is perfect for me, and it's perfect for the vast majority of Under 25s for whom music is something to be consumed for a couple of weeks, and then you move onto the next set of new songs.
The pitch is simple: Buy an iPod, pay $10 a month, and listen to whatever you want, whenever you want. It's easy money, and, from most reports, exactly what the record companies want.
If you want to "own" (I put it in quotes because I don't entirely agree that you do own your music with iTMS DRM) your music, go ahead. The subscription model would just add another string to the bow.
Why Steve is putting up a smokescreen is anyone's guess. There is a definite market for it, it's an easy contract to sign and it's easily implemented. I think he may just be out of touch, or his thinking is entirely railroaded into getting DRM off music, and that by accepting the model, is actually validating it (which, to be honest, is a very GOOD use for DRM).