I just read it and had an idea. I'm sure I'm not the first, and there's probably better out there, but here goes. The main point here, IMO, is that the labels really own only the means of distribution and the music itself. Once intellectual property is rightly realized to be the artists, all the label legitimately has left is distrobution.
The real trick is to figure out how to let the artist still get paid while controlling their own distro in an mp3 world. Using bit torrent technology and Oink's quality control restrictions, especially their encouragment of FLAC, why not have a torrent site that charges, say, $15, $30, or $50 packages (price = GB dowload allowance, or somesuch). The money is pooled by the online distributor. Once a song is on the site, it's free to trade for life.
The artists get paid handsomely for that initial upload! The artist can produce and master themselves, or pay someone to do it, whatever, but the point is that when the artists
literally control the music distro, there's no chance of it getting online before release.
They release it online themselves to an Oink-like site and get paid for it.
Check out
http://home.quicknet.nl/qn/prive/romeria/music.htm
BTW, everyone should get involved with
http://www.dimeadozen.org/
It's a free, legal, live bootleg sharing torrent site.