It still makes sense for them, but it was preventing them from hiring good employees.
If you had a choice of working for one company that attached a lot of strings to your employment, or another that didn’t attach any, which would you work for?
? These were not people they hired - these were people who paid THEM the $100 to get their products on iTunes.
BTW - Apple to shut iTunes ?
http://technology.timesonline.co.uk/tol/news/tech_and_web/article4859885.ece
“Apple considers shutting down their online music store if panel decide royalties for downloaded tracks should be increased”