I agree to some extent. A while ago HurdyGurdyMan posted a link to a song by McKenna. My wife and I liked it so well that we went out and bought her CD. A while back, when I worked at NCR, somebody got one of those flying toaster screen savers. It proliferated. Did that company lose hundreds of dollars? No way! Nobody would have bought that. Maybe one person, but not everyone that copied it.
The record companies would be smart to offer 96Kbs copies of their stuff for free. It would shut down a lot of the copying of the better quality stuff, and people who wanted a high quality CD would buy one. Especially if the price were not the bloated figure that they charge now. The record companies always wanted the radio stations to play their stuff for the exposure. Remember Payola? Trading low quality copies would be even more exposure.