But new artists want to. They want to make music, not worry about distribution or marketing. Nor do they even have experience in that.
Have you met the "artists" you claim are seeking out labels? One could easily argue the opposite is true, that real musicians do not seek out labels and record contracts, that in fact those activities are reserved for the untalented whose prowess as a musician is not great enough to earn them deserved recognition. The "real" talent cares not for contracts, marketing, market penetration, audience share, etc. etc.. They "just want to dance".
Why do the RIAA's members still control the music business? Why do these dinosaur publishing businesses still manage to thrive despite the Internet?
Two is not equal to three, even for large values of two.