Kas, you haven't explained anything. All you've said is that legal downloading of free music will kill the industry, because they'll be springing up from holes in the ground and advertising in every concievable form.
You haven't addressed the fact that a company providing a free service won't be able to afford multi-million dollar advertising, or the fact that it's easier, faster, and better to buy a proper album than download each individual song and burn it.
You've just stood back and told us that it will kill the industry. Now tell us HOW.
*sigh* You're thick. You are assuming that if downloading were legalized, there would be no innovation or deviation from the current methods of file sharing.
Don't you think companies like KaZaA would introduce features that would allow people to download entire albums with two or three clicks? Or someone could setup a high-quality music website, and host only high bitrate songs, and charge a nominal fee for downloading each. There are numerous other things that could happen if downloading was legalized. When there's money to be had you can count on innovations.
You also obviously don't know how P2P file sharing works, either. The makers of KaZaA do not run some big network, they don't host all the files, everything is hosted on the client's computers. There is relatively little overhead cost for this kind of operation, when compared to a 'traditional' method of sharing files (server-client).
Sharman Networks would undoubtedly add easy to use features and countless new bells and whistles to their Pro version of Kazaa. People pay for the Pro version, and then proceed to use the free service. That's how things are paid for. If music sharing were completely legalized, the 'music industry' (the big companies) would have no chance of making enough money to stay afloat, because their product could be found everywhere, via high-quality copies.
You've said "If downloading music were legal corporations would launch multi-million dollar advertising campaigns (somehow affording this on what money they bring in through selling "Pro" versions and ads) and would change so that the entire music industry would die! No, there's no altnerative! What? Paying to download is already legal? And my ideas still aren't true? Not listening... not listening!"