Regarding artists not asking for free music, perhaps Apple could offer a few free things to artists in exchange for free music for three months.
#1 - Free macs with Logic, Final Cut, and everything else Apple has for pro software.
#2 - Free monitors.
#3 - Free iTunes Connect accounts.
The idea being, here, we'll cover some of the costs of producing music, in exchange, we can use your music without paying you for a few months.
I think Apple is fronting a lot of cost to build a new service that seems to pay better than most.