Taking the youtube example though, I suppose legislation like SOPA could wipe them out and neuter them enough.
The record company being able to dangle an advance (not to mention the promotion and contacts they can hook them up with) seems a pretty good carrot to dangle and people like Louis C.K have probably made enough money to begin with to finance themselves.
I also get a feeling from musicians that I have talked to that your not considered a "real" band unless you are signed to a major label, although I suppose that attitude can change over time. You almost need a VC type system for musicians but the issue is that most creatives don't really want to think of themselves as "businesspeople".