Good interview. I don't completely agree with him regarding the necessity of doing more than "just music", but that's one way of doing it. I think if you treat your fans with respect, and put out quality material, you'll do just fine.
When NIN released their Ghosts album, I read about it on Ars. The first disc was free, but you were supposed to buy the remaining discs. The interesting thing, is you could legally share ALL the discs. Anyway, I hit up PirateBay to find the first disc(because sharing bandwidth is responsible), and the first bunch of links was for the whole set. I said fsck it, and downloaded the whole thing. I'm not a NIN fan at all, but I loved that album. I went to their site, and bought it. I didn't have to. I already had the album, but I wanted to support what they were doing, and I appreciated the respect they gave me by honoring my rights. They had a $300 ultra deluxe set that sold out fast, and even the digital download(for $5) gave a choice of 320kbps mp3 or flac, and you got a pdf book to go with it. THAT'S how you make money.
http://ghosts.nin.com/main/order_options