I'll guess that this type of distribution is inevitable. I'll also guess that someone will figure out how to make it as profitable, or more, as the current system.
I would certainly be interested in this, especially if the music was available in a high-quality download rather than a low-bit rate mp3.
I found this website: http://tinyurl.com/wo9fo by doing a quick search, and, even though the music is free here, it's an example of how this can work.
Best, John