It's too hard to protect the interests of buggy-whip makers. Let's outlaw automobiles. It's too hard to protect the interests of barges. Let's outlaw trains. It's too hard to protect the interests of ocean liners. Lets outlaw air travel.
No one is entitled to a living. No one should have to rely on the government to protect their business model. If your business model doesn't work in an Internet-enabled world, too fucking bad. We didn't bail out the buggy whip makers for having a business model that couldn't survive in an automobile enabled world. We didn't bail out the barge and steamboat industry when trains came along. Why should we bail out the recording industry because they can't hack it in an Internet-enabled world?
Because that's what this is. A bailout. This a bailout that dwarfs the bank bailout in terms of the harm it can do to our economy and our liberty. And it's not even a bailout for artists. It's a bailout for a parasitic monster that, as far as I can tell only serves to funnel money from consumers to lobbyists.
EDIT: By your logic, even the recording industry itself shouldn't exist. The recording industry killed off the "home-performance" industry and drastically cut sheet music sales by making and distributing recordings of performances. So who's looking out for their interests?