I agree that the industry gets more bank than the artists. I think that the artists should put the albums out themselves on their own site, offer it up for donation. If you want it for free, you got it directly from the band, if you want to support the band, give as much money as you want. More people may be willing to support the band in that way if people have such a problem buying the music now.
I use downloading as a preview tool. Discs do cost a bit much to buy something from someone I have never heard, so if I download it and enjoy it, I will purchase it at some point.
I love the experience of buying one of my favourite bands' albums before hearing a second at all and getting my first taste directly from the disc.