A good reminder for us all to go to our local music venue, buy a CD from the band and have them sign it. You take home something of value, get to hear the music LIVE and record a memory, and let the artist make a bit more than 50 cents.
I live in Chicago and have heard the pitch from the aforementioned dealer. Its actually a fairly low-key pitch. Really the ethical scenario isn't even a close call [unethical], even though I otherwise hold said dealer in high regard.
But here's the thing that ignites the passions: neither the recording industry position nor the all bits should be free crowd are defensible. Artists should be paid in some fashion for the ongoing intellectual property they have created. Consumers should have wide latitude to re-purpose (but not re-distribute) content they have licensed. A purchase of a download or a physical medium should convey broad usage rights for consistency. Practically speaking, the genie is out of the bottle: if there is an artist you love and constantly play, make it your responsibility to ensure they get something for their effort, even if you discovered it 30 years after it was produced.
For me that means licensing Tidal to sample new music ayce, buying a mixture of new and used CD's and ripping them to ensure I have access to whatever legacy recording I want whether I'm on line or not, and occasionally paying up for a special vinyl or high resolution download for those life-changing recordings. And, seeing live music in small venues.