Personally I think the music industry has gone stale in the past few years. Admittedly I've never been much of a fan of popular music in the first place, but at least before I could respect it. Now the only artists on the radio seem to be either talentless gangster rappers or identical NME-favourite indie bands. That's not to say I think all music nowadays is bad, but rather it largely gets ignored by the media.
Downloading isn't going to go away any time soon. I see it becoming even more common, especially now the music industry is finally catching onto it. Their absolute paranoia about piracy could backfire though- if they put too many anti-piracy/spyware things on the downloads they could end up with no one buying them and people will just go back to downloading them illegally.