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Many musicians *are* avoiding the RIAA. Unfortunately the RIAA still has a grip on the bulk of wide distribution, and of course radio. Look what's happened to MP3.com though if you want to see how the industry has tried to kill it with fees and royalties. I downloaded a ton of MP3s from bands I'd never heard of (and bought CDs of the ones I liked)before it started getting crappy. I also turned my stepson on to bands I discovered and he bought even more CDs. The RIAA continues to ignore the fact that word of mouth is and always has been the best advertising.
The whole article I quoted from specifically mentioned the fear that gripped the publishing industry, much as the RIAA are panicking, which turned out to be a baseless fear. Digital publishing actually is a whole new arena for business document handling, marketing, and a host of other uses.

I'm not sure how many are avoiding the RIAA. I know some older artists have gotten sick of it (Jimmy Buffett is a good example), in the younger crowd non-RIAA companies seem to be functioning as kind of a minor league, bands are signing there and if they do well move up to RIAA. IMHO this is one of the major problems the RIAA companies need to solve, they're no longer taking risks on marginal artists like they used to. They used to make a lot of money signing bands like Yes and being suprised by their popularity, now a band like Yes could never get an RIAA contract, but they could get a non-RIAA contract so all that extra money from suprise successes are going to other companies (at which point the RIAA might be willing to sign them, like deciding to ride the horse after it's left the barn).

Of course all that being said we need to keep in mind that the RIAA still makes a large buttload of money every year. Even with sales off over 10% from peak they're still competing with movies and video games for the #1 entertainment earner spot. Don't be too hasty to play taps for the "old model", it might be taking on water but it's not playing Titanic... no matter what the RIAA says.