@blogdiva Yes, all of this.
I've told people in the past that the power-move Apple made was to jump up and give the RIAA everything it wanted: format control, a very generous resource split, and encryption on the local files. They kept iTunes dancing to their flute until the alternatives had died.
... and then one day they turned around and took all that away, removed the encryption and changed the revenue share. And they said "What are you gonna do? Go to our competitor? Michael McWentBankrupt? You gonna build your own? With what talent? The talent we hired?"
It was a coup. A huge coup.