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...it can “acknowledge what the marketplace is already showing us: free exists whether you want to acknowledge it or not. Let’s acknowledge that, use it and do something with it.”
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Kudos to Mr. Reznor for acknowledging the reality of the situation.
I've said it before -- filesharing is not going away. You can't sue it out of existence and you can't legislate it either. Having known a few hackers in my day, I know there is no way to account for their ingenuity in finding new ways to circumvent the system. Given that, it's a fool's game to do anything other than try to adapt to the new marketplace.
The Big Four equate free with going out of business because it's incompatible with their current business model and they aren't willing or able to change. Setting aside the question of whether or not they're even necessary anymore, they seem to be ignoring several existent industries that manage just fine while charging their consumers nothing. Music in particular is unique in this regard because live shows make up a significant portion of the revenue for all but the biggest acts, and the experience of seeing a band live cannot be pirated.