We can theorize how things might go forever, but the fact is, we've never done this idea collectively and it's a lot easier to be skeptical and knock it down before it ever happened.
I don't know too much about concert tours, but if I am an 'artist' with a solid fan base and I can't make a living from my live presentations, then maybe something is fundamentally wrong with that system as well and it has to be reformed.
To start with, get rid of all the middle people, then use smaller auditoriums and don't make your shows with expensive props and visual effects. Also, I don't understand how anyone can compare making films to making music recordings. Sure, I can go outside with my video camera and shoot a movie with friends, but I sincerely doubt any theater owner would want to show it. The budget for making a movie is so much higher than making a record, there is no comparison whatsoever and it shouldn't be made free to download.
Carter asked who pays for the album, I can think of many creative ways, but this would become OT. At the end of the day, good engineers will always be in demand. You see, not everyone feels they have to record themselves and many artists I know are more than happy to pay extra for a good recording, anytime.
Giving the online music away does not feed, but actually kills the monster, and it may also allow people to get involved in music {a lot less} for the wrong reasons
FWIW
Edward