This was the same sort of view that Michael Arrington had(http://www.techcrunch.com/2007/03/21/good-news-cd-music-sales-down-20-from-2006/)
I don't think the 'give away the music and sell the show' is the answer though.
I don't think that the problem is based around people refusing to buy music. I see the current model for selling music being out of wack. ITunes is a really horrible situation for musicians. It still goes through the major label filtering before artists even see a penny. For bands not on a label it takes 35% of each song sold. http://www.downhillbattle.org/itunes/index.html