The first thing I want to get out of the way is a quick comment about the term Tipping Point. My source for the news about Amazon selling MP3s without any digital rights management software attached used the phrase Tipping Point, but apologized for its overuse. I think the use of the term Tipping Point has reached a Tipping Point.
I was just contemplating making my first ever portable MP3 player purchase and this news sounds really encouraging. We can expect lower prices for legally purchased songs as a price war ensues.
I have only ever purchased music online once or twice from small record companies. I mostly get free stuff from small record companies or simply listen to music on YouTube. If buying popular new releases becomes very inexpensive, the demand might increase to a surprising degree. The hard part will be changing the habits of people who are happily stealing music.