Interesting idea, although the article and the comment thread kind of devolve into a bit of “This is DRM! No it’s not!” shouting.
The pop band The Presidents of the United States of America have released a special iPhone app that contains all of the music from all of their albums, as well as additional rare and unreleased music and images. The whole thing costs $3 -- which certainly blows the old $1/song model out of the water.
Band Puts All Its Music (Plus More) Into A $3 iPhone App | Techdirt
The biggest problem I see, and so do others, is that this creates a boxed-in experience for the listener. POTUSA’s music lives in their app, not on the iPod itself. No playlisting with the other music you own.
