I also think it's true that the major labels are reacting to this like dinosaurs - they know something needs to be done, but they want to patch the problem instead of getting caught up with the times and reinventing the product, at the risk of destroying their cash cow, the CD with a retail price of $16.99. That's what annoys me to no end - they want to debilitate their current product without offering up any incentive to the customer. I buy a lot of CDs - easily 100+ a year. I make copies of all of them to put in CD changers in my system as well as in my car. I like having the original copy (I could borrow tons of CDs from the library or from friends to reduce my cost if I wanted to and felt right about it, but I don't). I shop for good prices - 20% off at the local outlet, the CD clubs, etc. In other words, I'm a prime example of why the current model is a cash cow for the companies. Now they want to change (in all negative ways) the model for me without offering me anything positive. Even if I don't take this as an inherent accusation that I am part of the problem, this is bad business. Gee, I'm sorry that it's going to cost you to "catch up" and to transform your business model, but you know what - that's what it's going to take if you want me to continue pumping $2000 a year into your market. Every other service I purchase gives me more each year for less, so it's not going to work for the music industry to give me less for the same amount.
So far I haven't encountered a copy protected CD, so I continue with the same model I've used for several years now. If and when it becomes a regular encounter, I will change the model. I would like to change the model by industry incentive - define a service that's worth the price (and there is a huge market for people willing to pay for a service) and meets my needs. If that isn't what's offered, then at a minimum I'll take a break from buying new CDs until some other model is defined.
Maybe the new model will be the new hi-rez formats, brought down to current CD prices - a hi-rez format with copy protection at the same price might be an example of give-and-take. -Kirk