Napster succeeds because the music industry has been so focused on margins and control that they've lost sight of the fact that consumers have the ultimate control of the music. Open Source is the Grateful Dead. This bootleg era should have taught the music industry some lessons. Sure, there would be folks who abused the system and acquired all of their music through bootlegs, but these people weren't going to pony up for major-label releases anyway. And that's why musicians are so heartened by Napster and the unprecedented openness in the music world.
Most musicians are smart enough to realize that fans are won through exposure to the actual music.