Ironically, out of these two, it's iTunes that's more harebrained. Considering that digital storage is almost free, and it's wasteful to transfer bits across half the planet each time you want to listen to a particular song again, streaming is a... pretty suboptimal solution. Especially that you essentially relinquish ownership of your own media, being instead at the mercy of a service provider. Alas, this was the way to work around the huge mess that is IP laws.