Not absurd. Performance licenses pay the people who recorded the song. The article mentioned Avril Lavigne...this would not only pay her but also her drummer, bass player etc. Those are the musicians who are probably struggling to get by and really need to be paid for their work. If the restaurant owner is using their work why shouldn't they get paid?
Speaking of, there was a hearing on capitol hill last week that would help these musicians get paid for radio play (right now only songwriters are paid). Anyone know how it went?