A big problem is that since the radio stations have reduced their play lists there have been few ways to try out new music. You can't hear it on MTV (which doesn't play music for some reason) or the radio, and after getting burned by a few overly hyped Spin or Rolling Stone reviews, what are you supposed to do? Dump $16 on something that might not be what you want or try it out first. If the latter you don't have many legal options unless you go to some of the better music stores with CD players for customers to use. Otherwise Downloading or buying used and cheap are your options.
The industry is blaming MP3s when it has done two things, priced the music past the point where people will risk it (and I have seen neglible changes in pricing since that suit against the industry), and put out shoddy product that has caused more people to download and burn. When I was a kid I made tapes of albums, and usually ended up buying them if they were any good.
Until I see statistics showing how often these illegal copies are listened to, I downplay them.
By the way, I don't do MP-3s, they just sound bad to me.