If music downloads were 25p each (about 40c) then a you would probably see more sales, and therefore increase revenue and perhaps some of the illegal downloaders would go legal because it's only 25p.
problem with the 'music industry' is that it is a) greedy and b) wastes lots of money on rubbish because it's always chasing the next big thing based on the last big thing and profligate in it's marketing and advertising and this need to show bling rather than finding great bands and artists and letting people love the music.
I hope the major's hit the skids, because in the gap that follows thousands of independent labels with music in their souls will fill the void.
Music will never die and neither will making a living from it. but if the current climate leads to less soulless multi-millionaires and more artists making a living, then aside from the shareholders of the majors, who's going to care?