I remember a good few years ago, when the Russian site 'allofmp3' was causing a massive storm in the US - they tried everything to shut it down. Eventually it closed, the US thought they'd protected their artists royalties, but it was immediately replaced by a load of others, such as mp3fiesta, which I occasionally use, which as you say, are a tenth of the price.
I think it's accepted now that the model for making money from music has changed. It's not about album sales anymore. Touring (or live gigs, festivals etc), licensing and merchandise. That's the new model. If you can sell a bunch of hard copy albums then great, but unless you're huge, you ain't gonna get rich off that. This is not the best news for new struggling artists, but hey, life's a bitch sometimes. On the plus side, at least now you can make a production quality album in your bedroom for a few hundred bucks, put it out there on iTunes, create a splash and try and get some gigs. The pros and cons of technology, right there.