With the price fixing the only competition in town is priced at free. Therefore the market should bear somewhere between $10 and free. But not $10. Its still a ripoff no matter what way you shake it. Competitively, paying to download something is purely for the convenience of not having to hunt down a free copy. So I'm paying not for the music, but the ease of downloading it instantly. And thats not worth $10 to me.
(Ok, so the music you buy doesn't have DRM, that is true. But its still worth absolutely nothing after you download it...)