Yeah, here's how I see it. The whole MP3 venture could never be expected to replace vinyl/cd whatever...you also couldn't depend on it to run your business either. In my case, I would use the mp3 "label" to release stuff that is slightly more obscure or experimental. These tracks would be stuff that normally wouldn't be released onto vinyl anyway. This way, you wouldn't expect much back in return, money-wise. It would be one of those things that you just put it out mostly for people to enjoy, but maybe the whole $80us you make back would pay your cable bill for the month or something.
As long as P2P is around (which it will never go away)...this system will really not work. But like I said, I never planned on being a "get rich" system anyway. Even if a new mp3 standard is made with mp3s that only play on one computer...someone will record the audio with outboard equipment, and loop it back into their computer and re-encode it as an mp3 everyone can listen to.
The digital music format is really dead before it even recieves its 15 minutes of fame. I think it would be a fun promotion though, and who knows...if you make a few dollars off of it I guess you can't complain.