You've made some very good points here. I'd like to address a few of them.
Talented Artists Usually Suck at Managing Their Careers
There is no argument at all with this. It's a sad fact.
We Need Managers to Help Musicians Do What They Cannot
Another unarguable fact. There is an awful lack of managers and promoters in the music scene. I have always found this so bizarre, because with the millions of musicians out there, it's just business for the taking for an ambitious and creative manager/agent. I don't know a single musician who wouldn't gladly part with 15% of their gig money for a good manager who brings them work. They'd be stupid not to.
Free Music Online is Killing Artists
Mmmm, not sure about that one. If you are intent on selling your MP3s online and you aren't in the top ten acts internationally, well yeah - you're pretty much pissing in the wind because the industry HAS conditioned the public to expect (and get) free music. But what I and many other artists have done is to accept this unfortunate fact for what it is and retool our strategy; only put MP3s online as promotion for your pay music. Let them be free, for listening or downloading. What I have found is that a small percentage of all the folks who listen contact me about where they can buy my CDs. Its not the best way to go about it, but given the realities of this screwy market, at least we get some return as opposed to none.
Ad Run Sites, Free to Musicians, Are The Way To Go
This may shock you, but I totally agree. The dilemma is this, though - in order to sell enough ads to make the site self sustaining to profitable, you have to show advertisers that you have the numbers of consumers coming through the site to make their ad dollars spent on you, worth it. AND, we all know that simply making everything free is just not going to get millions to swarm to your site to make it suddenly attractive to advertisers. That is why I don't blame the smaller or newer musician's sites for charging a subscription. Now on what business model they do that is clearly a matter of contention. But I see it in a sort of opposite way to most...that is, I want to see a subscription based site go TOTALLY FREE to the musician once the site is garnering sufficient ad revenue.
And yes, that includes BandMix.