what in the hell were they thinking with that "we'll host your cd's online for you" thing?!

They were liberating people from physical media much like the empeg. And it's interesting the way they did it. You were required to "scan" in every CD you wanted to use. On their side, they simply gave you permission to that CD. No ripping was involved, thus it only took up a small amount of storage for all the clients who used it. The downside is that not all CDs were available, but a request could be sent to them to get them to buy the disk and put it online.

Nice idea. But they didn't have the lawyers to back it up.