I think free music downloading (or 'sharing') is fine as long as people actually go out and buy the CDs if they find a band they particularly like. I've downloaded thousands of songs in my time, but I've also bought hundreds of CDs.
In terms of good download programs my favourite is Soulseek. You can find almost anything on it, and it actually does some good for the music industry by allowing virtually unknown bands without the means to release albums to get their music out there.
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