...that the recording industry would have to fundamentally change the way they do business if they wanted to come out on top.
People have come to demand their music digitally. If the RI doesn't want them to file-share, they must offer reasonable alternatives ala iTunes - 99 cents a song flat fee, no subscription, good selection, generous rights of use upon download. They also have to improve their PR image, primarily by changing the way they deal with artists (suspect accounting, debts, etc). Launching an education initiative about copyright law and lowering the price of CDs by 5-10 dollars would go a long way to help too.
Or, they can let illegal file-sharing flourish. Their call. But people are willing to pay for their music to get a good copy legitimately and support the artist. iTunes has proven as much with 70 million songs sold last year. So why not use it to their advantage?
That's the Cliffs Notes version.
YUM! MORE FISH HEADS!!!