This!
I hate to quote Steve Jobs, but when he launched the iTunes Music Store he said the way to compete with piracy is to offer a service that is easier and better than Snapster, or at least easy and good enough that people think it's worth paying for, and I think he hit the nail on the head.
Let that be a warning that if offers start to suck again, we'll easily revert back to torrenting, if you don't make it worthwhile.