I'd happily buy tracks for itunes prices if I could get them in decent unrestricted formats, scene standard mp3 and flac (funny I have to dream of a download service that's up to the quality of the pirates). I've bought mp3s from bleep.com before, and that doesn't even have a lossless option for most things. I'm probably unusual in that I have no love of packaging (game boxes, cd cases, etc...) unless it's unusually excellent packaging, so I'd buy the majority of my data online if it was reasonable. I expect there are increasingly more people like me though, that are pretty much entirely digital, portable and internet connected in their media choices, know how to rip a CD or crack the drm off an itunes file, and will pay so they don't have to.
Of course there's allofmp3 but I'd rather risk being sued than pay someone to pirate for me.
Of course there's allofmp3 but I'd rather risk being sued than pay someone to pirate for me.