The problem is that most people see that some music is given away for free and then suddenly the demand that all their music is free.
No, that's NOT the problem. That's A problem, but not THE problem.
The problem is that the Internet makes the distribution of music cheaper.
This has two effects:
1. People can more efficiently distribute music illegally.
2. More people can afford to distribute music legally without going through the people who were handling the distribution before the Internet.
There is debate over the relative sizes of these two effects.
The existing illegal music distribution channels were already more efficient than the music distribution industry, because they didn't have to pay for advertising. The existing out-of-band legal music distribution channels were pretty limited... I never mail-ordered much, for example, I mostly bought tapes and later discs from local bands. See, they couldn't really effectively piggyback on the channels the pirates were using (well, they could, but they didn't get paid).
So the biggest change has not been in the availability of illegally distributed music... you could always get all that you wanted if you wanted to... it's in the availability of LEGALLY distributed music outside the "distribution industry" channels.
TL;DR: see my previous message.