Second, it's not the RIAA that does the charging. Congress has declared that, rather than forcing thousands of Internet broadcasters to strike individual deals with tens of thousands of authors, there will be one, government-set royalty rate for all works. Since, again, copyright is not a function of natural law but is instead an artifact of the Constitution, Congress has every right to make this decision.
Congress has tasked the Library of Congress with setting this rate, and that agency is required to balance the public interest in access to the works against the fair market value of the authors' government-granted monopoly power. Again, copyrights are not property rights and have no place in the natural law; they exist to serve a specific public good outlined in the Constitution. Setting a royalty rate of, say, $1000 per song would obviously eliminate the entire medium of Internet broadcasting and reduce the public's media choices, which clearly does not serve the Constitutional purpose of promoting "Science and useful Arts."
The problem here is that the Library of Congress has flagrantly ignored its legislatively-mandated duty to balance these public and private interests. The satellite radio market is roughly 40 times larger than the Internet radio market ($2 billion vs. $50 million), so, presumptively, the satellite royalty rate is the fair market value—and the RIAA had no complaints about the satellite radio rate. Yet the new Internet radio rate is four times higher than the satellite rate. That can only make sense if the Library of Congress sees some specific public interest in crushing Internet radio, which is absurd.
No, the "government bailout" here is the Library of Congress royalty panel's selling out the public interest to the RIAA. This law is absolutely the right response. First, it corrects the LoC's malfeasance by pegging the Internet rate to the satellite one. Second, it sets new reporting and accountability rules for the royalty board, to prevent this from happening again. I would like Congress to go further and impeach all three current members of the royalty board, so that they're forced to testify under oath to try to explain their betrayal of the public interest, but that can come later.
And your "feeling" about traditional broadcast stations winning on the Internet is dead wrong, by the way. The most successful Internet broadcasters—Live365, Pandora and SomaFM—have no connection to traditional stations. Just think about it for a minute: Why would you sit at your desk to listen to a local FM station on your $1000 computer over a $50/month Internet connection, when you can listen to that exact same station anywhere you go on your $5 radio for $0 a month? Internet radio only makes sense when it delivers content you can't get via traditional broadcast.
Internet radio serves a public interest and can do so while paying authors their fair market value. Congress is absolutely right to slap down these three corrupt bureaucrats' attempt to wreck Internet radio.