I dislike this argument - it assumes that products ought to be priced according to their cost of production, which is patently false in reality. The price of a product is whatever the market will bear.
Does this means MP3s aren't overpriced? Nope. The monopolistic cartel-like behavior of the labels does seem to prevent the market from reaching a natural equilibrium price for music; that being said, the notion that digital things should be almost-free because they're almost-free to produce IMHO is BS.
> "$9.00+ for digital DRMed media is a total ripoff."
None of the major digital music stores have been DRMed for a long time. Both iTunes and Amazon MP3 are DRM free, and in fact the only real place you'll find DRM on music these days is the Zune Store - but that's more because you're on a all-you-can-listen subscription plan, there's no confusion about whether or not you own your files.