Using the word "information" in this context is rather disingenuous. We don't play music on our information players, we don't buy books at the local information store, and we don't see movies at the information theater. If we are going to have a good discussion, let's call things what they are.
It seems ridiculous that we should ignore the power of the internet for content distribution forever because it doesn't pay the bills now.
Fiat money is ridiculous in exactly the same way. Would you say that it seems ridiculous to ignore the power of Xerox because it doesn't pay the bills for sellers of physical goods?