Kim Dotcom is an evil genius and a remarkable marketing guy. During his whole career no doubts he made a fortune out of other people work BUT, still, he can't be considered responsible for it because - in fact - he had MILLIONS of users who actually used the pirated content megaupload made available (and i dare anyone here to throw the first stone if they never used megaupload). So, while i'm not yet sure i like the guy, i still consider the megaupload affair a huge mistake.
What is astonishing anyway is what he made out of the whole situation. No doubt most of the people out there would have been simply destroyed by events. Not only he wasn't, but he managed to launch two different businesses that still surely has a lot to show in the future.
Regarding this specific music project, i can only say that i agree with him. Paying for the music you like IS the new model , so far he looks like one of the few who understood it (together with Spotify, which is in fact doing the same).
PS: I really like the album he made available for free.