Small time musicians get screwed, but that's normal. I would not give a fsck. Make it very cheap and very easy. If songs only cost a few cents, most luser types would buy them. Government is like a gluttonous man that needs to consume more and more as he gets larger and larger.
Every blank tape sold has royalties attached.
There is no way for everyone to win, but some sort of compromise would be nice, so that the musicians are not angry, and the fans don't feel like criminals. You got that right. Used cat litter. I don't expect anyone to buy my used cat litter. On the other hand, anyone who voluntarily listens to that stuff needs a lobotomy, and probably can't pay for it anyhow.