Drat... I was hoping the RIAA just got stupid and overstepped their bounds. After all, do you really think you can be a non-governmental agency and afford better lawyers than Microsoft? After all, a lot of times it is not whether the facts are on your side - it is more like the Cold War: Can you outspend your opponent and force them into financial collapse or an out-of-court settlement.
As to the music industry dying - probably. However, what were they suppose to change their business model to? A free product that is ad supported? Donation based like Wikipedia? No model, just make stuff and give it away free? Go through tightly controlled iTunes store, or pay huge licensing fees to Apple because they undoubtedly hold several key patents to creating and running an online music store?