For a person like me, downloading is beneficial to both the artist and industry.
I download and explore what bands are out there, and therefore am opened up to hundreds of more bands, and subsequently I am easily more likely to buy more albums because I am more aware of quality artists and albums.
Without downloading there goes 95% of the bands I listen to, and a good portion of the albums I own because I wouldn't have even heard of the bands that I do now. And with poor availability, and high costs for albums I am not willing to risk $25-30 on a cd just to check it out.