The Postal Service:
Amazon: Death Cab, The Shins
iTunes: Imogen Heap, Feist, M.I.A.
Perceptron: The Knife, Dntel, Bright Eyes
Eric B and Rakim:
Amazon: EPMD, Big Daddy Kane, Public Enemy
iTunes: EPMD, Boogie Down Productions, KRS-One
Perceptron: No recommendations
Fleetwood Mac:
Amazon: Journey, Bob Seger, Steve Miller
iTunes: Rod Stewart, Eric Clapton, The Doobie Brothers
Perceptron: Vetiver, The Beach Boys, The Everly Brothers
Sepultura:
Amazon: Pantera, Slayer, Metallica
iTunes: Soulfly, Machine Head, Fear Factory
Perceptron: Moonspell, Soulfly (x3), Fear Factory
In none of these head-to-heads does Perceptron do the best job (the Dntel pick ties it with Amazon's Death Cab pick). I can intuitively guess that iTunes will do a better job of recommending for me than your website, because millions of people's buying habits make iTunes smarter every day.
It's not just that this space is crowded; it's that it structurally resists your entrance. You need features, lots of them, compelling features, or this isn't going anywhere.
Also, you're trivially XSS-able:
http://theperceptron.com/recommendation/artist/h%3Cscript%3E...('hi');%3C%2fscript%3E?h=true
Finally: "astute music recommendations" is a terrible tagline. It doesn't convey value. It tells me why you like your code, but not why your code matters to me.