The rise and fall (perhaps) of the mp3?

Recently it was reported that sales of the Apple iPod have fallen for the first time since 2006. Whilst this does not spell doom for Apple itself (popularity of newer devices such as the iPad and iPhone have prevented this), it does bring in to question the longevity of downloadable digital music. Audiophiles have long lamented the lack of sound quality found in an mpeg standard, and the recent rise in popularity of Vinyl sales suggests that the experience of music will continue to outweigh the convenience.
In the visual sphere, virtual galleries have never pretended to succeed their offline parentage, yet digital music formats have affected the economy of music massively. Record companies had looked at iTunes as the benchmark in revolutionising music revenue (through micro-payment), and now in its possible decline, they must reconsider what the future of music revenue will be.
I don't think it is quite time to nix the idea of micro-payments, rather it may be that by expanding micro-payment beyond a locked in system such as iTunes (which is reliant on the built in technological obsolescence of hardware), to a wider subscription based service, allowing niche collections to spring up, managed by relevant curators.

Food for thought..