i agree 100%.
for the record the first article says you can put them on your ipod, but the files are currently not compatible with other mp3 players, at least thats how i read it.
i think its an attempt for the music industry to get control back over the most popular medium. if this works, and they get back control, then there no telling what shit they'll try to pull. if this works and becomes dominant i don't see why they wouldn't try to charge some monthly/annual fee. but maybe they just realize how far people will go and how hard it is to catch pirated music and won't do that for fear of losing control again.
thats kind of paranoid, but there is a shitload of money at stake. it sounds awesome that artists will be paid according to popularity and how many times their songs get played, but where is that money coming from? and will that actually function properly?