The way I see it, musicians need to get back to the life of a troubador.
With everyone wanting to be "stars", be it American Idolatry, or TV Reality show-offs and the Internet, the idea that a band can take the world by storm ala the Beatles, et al are over.
With the ability to record and sell directly from the comfort of one's own living room and with such fierce competition from the entire planet, there simply lacks any real authenticity or originality any longer. Even original acts are now doing remakes (ahem...covers) and foregoing the trouble of trying to create anything new under the sun. The music business has become so much business, and so little music, that it's scarcely relevant.
As an artist, I no longer sign my paintings and simply put an Om symbol on them and let them go for a price. I make a living from the next painting sale, or as a musician, from the next gig. I no longer deal with the insanity or superficiality of trying to "make it big". I no longer feel the need to live up to unrealistic expectations, save for what my band can do for an audience on any given night.
Music has become more spiritual for me, where it infuses me with an energy I can both give and receive in a live setting. I get more from performing live without the worry about the "business" aspect of it. I'll leave that to those in search of stardom.
Copyright, shmoppyright. I don't even care anymore.
Without dissing your viewpoint, I would say that there is no inherent connection between the principle of sales of recordings, and lofty or unrealistic expectations. It is entirely possible to be a small independent businessman selling a few recordings, just like you sell a few paintings.
The worldwide audience is so large that even a relatively non commercial recording artist, if they do a good job, should be able to find an audience. With the middleman cut out, not that many would need to be sold in order to make a living.
