I think downloading music is a great thing. I wouldn't have been able to find and listen to half the bands that I have if it weren't for downloading. Any time I find an album I love, I will go out and buy it on vinyl, straight from the label whenever I can so the artist gets the most out of my purchase. If I had purchased all of the music in my digital library, I would have to be rich, and not to mention, I would have bought tons of bad albums.
Downloading music helps every one. If an artist puts out a bad album, it won't sell, as opposed to before, when an artist can put out a single, get it played on the radio, and have swarms of people run out to buy the album only to find out that the single is the only good song on the album. If you put out a good product, people will buy it, the same goes for almost every thing in life. Movies are the same way. You're not going to buy the DVD of the shitty movie you saw in the theaters, but you would more than willingly spend $30 on the deluxe edition blu-ray of The Dark Knight.
Music is expensive. Its not a necessity. You're buying it because you want to, not because you have to. Sometimes I would rather hold off on getting the bands latest record and downloading it, just to be able to afford the tickets to the tour they will be having in support for the album, either way, a good band will get my money.
Its been proven in countless statistics that downloading music helps music sales, and if you think it about, its not hard to see why.