Radiohead and its new direct distribution model is entirely consistent with consumer expectation of how the internet should operate. For those just waking up, Radiohead is distributing their music directly to the public via their own site called In Rainbows. The difference in the approach is that consumers that want the music are asked to name their own price.
From a publicity standpoint the approach has put Radiohead on top of the charts that count such as Hype Machine. From a financial standpoint, this is only the beginning as bands need to figure out beyond the music how to monetize the millions of people a promotion like this is going to attract. Do I hear advertising (although imposing an advertising into something like this that definitely rises to the level of "cool" might be a mistake or said another way a "culture clash").