Given that up until recently this is was how pretty much all music was made, I believe that you have reduced the likes of Mozart, Beethoven and Bach to creating merely stifled and uninnovative music.
I'll agree on the point of big budget movies being thrown out with all this. Games and books however I don't think will be.
I would like to state that I don't think a system that relays on patrons in this day and age would work. But the donations thing may.
I myself would like to see a more sane copyright term. Something like 25 years or so should do it.
There is no reason to let those who make "Intellectual Property" have such a huge monopoly on their works. Other Intellectual Properties, like Patents, expire on a term of 14years. Could you imagine a world where patent law was guaranteed for life +70 years?. I believe the Air Conditioning (invented in 1902) would still be covered. Imagine a world where only Carrier Corporation could make AC systems. Good news would be that in this weird world the patent should be up in 10 more years! Assuming it doesn't get extended any more.
Just imagine the LACK of innovation that would have been brought to the world if this were the case.
There was a time when Patent Law and Copyright Law were in lockstep and now they are not. I think its time that we bring them back together, for better or worse.