You can't answer the question.....
'"Is file sharing killing music?" - because music is more alive and well than ever.'
So because independent music is doing better, Majors sales are off for the 6th straight year.....almost to a 50% loss of sales in 6 years. Thats 1/2 the sales. The trend is headed downward, and will not stop until someone does something about the problem.
There are always a few exceptions to the rule, and with a few breakthrough indie artists, we are seeing a better representation of what is in the marketplace. This is because of the birth of the Mbox (home studio) and cheap CD pressing, not to mention Myspace and sites like yours that offer indies an easy way to get their CD's to the marketplace. The same thing happened with SubPop, Fat Wreckords, Roadrunner and Epitaph when they had a few srtists breakthough into the mainstream.....now bands need with smaller labels can make a dent.
So you may think that nothing is wrong, but eventually the new "model" will fail. Why buy the cow when you get the milk for free?