I'm sad to see a very interesting alternative disappear, but:
Lala is obviously a much better store
I find this claim hard to make with such certainty. It's obviously different, but I can think of at least two ways it's not better:
1.) The music you "bought" for web streaming is only available as long as Lala stays open. Corporations are amoral and self interested, and the risk that that ability would be taken away due to any number of reasons was always there. That's not to say that it was wrong or foolish of anyone to take on the risk of using the service, but that risk is present and worth being aware of. Also note that this doesn't strictly rely on Apple being "evil", it was the nature of the arrangement. They could have gone out of business due to non-profitability, or a number of other possibilities. Note that currently, if you buy DRM'd content from iTunes (this does not include music, but does include App Store content), you're in a very similar position with regard to the risk you're choosing to take on.
2.) Streaming music online limits you to those times when you have an internet connection. If your use case for music ever involves playback on a device not connected to the internet, as far as I know, your Lala music is out. This type of case does seem to be shrinking, though.
iTunes of course has complimentary disadvantages: the music is quite a bit more expensive, and hosting, storing, and backing up the files is up to the end user. But you get to keep them forever, even if Apple goes out of business tomorrow, which is a plus
Also, if the Lala business model is really a profitable one, I'm pretty sure someone else will try to do it.