Where his logic becomes flawed is that he assumes a free market exists where one doesn't. If the MPAA and RIAA did with gas what they are doing with music, there would be riots in the streets.
What do you mean you don't have choice, here's a single source offering quote "75,425 FREE MP3s".
http://music.download.com/
I don't know about you but that sounds like a lot of listening.