I think this is a pretty accurate summation of the state of digital music. As someone who has taken to buying music online (iTunes) almost exclusively, I think it's a welcome change. I think they'd have been better off spending the last 5 years adjusting to digital delivery, rather than suing 10 year olds.
EMI's Nicoli sees Internet reviving music industry - Yahoo! News: "'We've moved on from the days when the main impact of digital technology was to harm our industry by facilitating rampant online and physical theft,' he said. 'The day is surely within our sights when digital growth outstrips physical decline and we can all compete for share of a growing pie.'"