I disagree on the price.
I'd rather pay per song than I had a monthly fee, like, say NetFlix or something. Plus, I want the company to make money as well as the artist. It's how the economy works. For .25/song, they aren't making anything. You can replay the song thousands of times....get hours of enjoyment...for .25? Come on.
For $1/song I can load up an entire CD of songs I *want* to hear. If people will pay $15-$20 to buy a CD, to listen to one song (and millions do), they will pay $1 to d/l that song, combine it with 15 others they like, and burn it to a CD. High quality, super fast downloads, virus-free, and legit.
I plan to. And I think there is a sizable market for this.
$1 (actually, .99 cents) is an excellent psychological price point, as well. Shoot, I might need to collect me some Apple stock, again. :)