Agree with you completely. Critisims need to go to the source of the problem, which is the labels. If anything, I think the success of iTunes should convince labels to be even more liberal in regards to rights management. Unless they're foolish enough to believe it suceeded because of DRM.

The true story of DRM is that it's a 'feature' consumers don't actually want or need.

I'm still a 'screw-DRM' guy, but as far as things go Apple has done the best they could.