Actually this has hit the newspapers today as well. It actually looks like a legit download competitor to iTunes with a similar number of songs. The problem - Windows XP/Vista client software required!
IMHO piracy occurs because companies over value their products. Radiohead offered an "honesty download" and the average amount paid was about GBP8 (I don't have one of those funny shaped money things

). The minimum amount was accepted was zero cost. This indicates that consumers acceptable price for an album is GBP8, not the GBP9 to GBP14 or more advertised on Virgin Music UK.
We'll just have to see if this is a success for long enough to get Linux client, after the Mac client in two months
