OpenP2P.com has an article/interview titled Independent Label Go-Kart Records Embraces MP3s which is quite interesting. A quote:

Instead of suing little girls and filing ridiculous lawsuits, we here at Go-Kart have decided to embrace this new MP3 technology, and have unleashed the first commercially sold MP3 CD… We feel that this format is the perfect way to promote bands, rather than take away from them.

They even include instructions on how to burn the mp3s to other CDs. Greg Ross, who runs Go-Kart, seems like an entirely sane person. Along with services like irate radio, CDBaby, and Dell's (hopefully good) upcoming music service, it looks like within a few months you won't need to illegally download songs you want, which is a definite improvement. (As Greg notes in the interview, filesharing services suck for finding what you want anyway, so I'll be happy when there's a good, my-rights friendly service where I don't have to worry about getting 4 minutes of a 20-second loop or digital bleeps and bloops instead of (say) Sheryl Crow's cover of Cat Stevens' First Cut Is The Deepest. Of course whether Dell will be the first big service to sell big-name artists and still manage sane DRM settings is an unfortunately open question.)