This is exactly how market works: when there is an oversupply of X the price of X drops and X suppliers move on to something more profitable.
Will the academic job market be different? Let's hope so. An early sign of it would be dropping application rates to grad school programs, particularly the less prestigious ones.
>Record companies have been treating musicians like crap for at least a lifetime now, and there are still people dreaming of record contracts.
If I understood you correctly, you are implying that musicians have better options than signing with labels and are acting irrationally by doing so? I disagree.