This looks like an interesting new way for indie artists to make some dough, but like someone already pointed out, they still need money for decent equipment, studio time, and mixing and mastering (at least) before their stuff is even worth listening to. This isn't a problem software or the internet can help with.

People seem to think labels are pointless with the internet now, but without a respected label backing you, good luck getting into a real music festival, good luck getting attention from pitchfork, tv shows, magazines, etc, and good luck getting to tour with other good bands.

MySpace will only get you so far.