Totally.
I guess there is the potential problem that if more music is given away then it heightens the perception that music is free, and maybe "undercuts" those who need to make a living from it.
And yeh
But at the end of the day, I don't really make music to make money. Yeh it would be nice if I could cover some of the costs, and I'm hoping to work on that one slowly, but at the moment I'm working, I'm hoping to do a PhD next year, so turning it into a business is not my main aim.
I give CDs out, to my mates, to cute girls in clubs, to people who look like they might come to a gig if they recognise my name - that last one is promotion I guess, but if people who put on nights know I'll get folk in then I get gigs which I enjoy, and there's more chance of getting some beer money for playing.
At the end of the day if I have a product from my hobby what good is it if it's sat in my CD player for no one else to enjoy? It's like if I'm sat out in the sun and make a dreamcatcher (yeh old hippy I know), or split up a plant that's too big for it's pot, or make too many pots of chutney - what use is it to me, and I don't need the couple of quid I might be able to flog it to someone for...