Musicians have always made a majority of their money from playing live shows(with some large exceptions, obviously). Do you need this backed up with facts? It's pretty well known. Albums are a great way to advertise your live music. It used to cost a ton of money to make a crappy recording. Now it's practically free to create a good recording.

I don't see the point of the recording industry, frankly. I'm not willing to give up my right to share with people in order to ensure that the record companies exist. Sorry. Listen to the crap that is put out by record companies. They control the radio stations. You here the same thing all day, from DJs who don't even know what they are playing. Most of the quality stuff is made without their help, they merely act as a distribution channel.

I see music as being much more home grown in the future. Maybe DJs will once again play what they like instead of what corporations force down our throats. One thing is for sure, if people love music they will continue to make it. We will be left with a lot less crap once the record companies are gone.