So, apparently about a year after Qtrax announced that it had deals with all the major labels, it has launched. For those who do not know (or totally forgot - like me) Qtrax promises to make music from the major labels available for free on it's Gnutella based P2P service. The model is supported by ads on the site. In theory, this sounds like a great idea - use P2P, the way most people aquire music, and make music available for the price that people want to pay for it - nothing. Unfortunately, the scheme is crippled by an excessive DRM scheme.
The problem with any service like this is IT CANNOT COMPETE WITH FREE, EASILY AVAILABLE MUSIC. The model presented in regular P2P services and Torrents is king - all the music you ever want for free. In my opinion, you cannot make a model where you "sell" digital music - it is not profitable or sustainable when people have the options of open P2P and Torrent.
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