File sharing becoming legal?

I was reading over at Hollywood Idiocy that apparently the music industry has done a major flip-flop where free music file sharing is concerned. That is, as long as you download the free files from a server they point to where you'll also find advertising to go with it. Truthfully, this is probably the best way to go. After all, we listen to the radio for free and we get the advertising on there, so why should this be a problem for anyone who wants free music for their computer or iPod?

Better to suffer through some ads than to face the kind of charges Jammie Thomas faced. I am hoping they drop this ridiculously large settlement against her, in light of this turnabout. The industry will never see the exorbitant amount of money she is faced with. What was the "jury of her peers" thinking when they allowed this? What was the judge thinking?

According to HollywoodIdiocy, the settlement amounts to

...the equivalent of $9,250 per song for every song she’d allegedly downloaded for free...

How is that fair?

I agree it was wrong to download them from the file sharing sites, but I can't even begin to imagine that this punishment was justified. Maybe with this new idea (which was probably inspired by radio to begin with), people can listen to the individual music they want without having to purchase entire albums, when they only wanted one song. It looks to me like everyone wins this way.