One issue that hasn't really been addressed here is marketing, which has a huge impact. What would happen if Apple were to license FairPlay? Other download-to-own stores still suffer the problem of little publicity, and those with competing prices could lose customers if all players supported FairPlay files. How is it again that this measure would prevent a monopoly?
Technically, though, CD sales (even online, as from amazon.com) are still much more prevalent. I recall seeing that iTMS is the only music download venue in the top ten music retailers.
So why is it that Sony can offer some albums made by its recording label, yet only make them available through its online store or in DRMed "CDs" (which, of course, are not really CDs, as they don't meet the industry standard CD specs), and face no legal ramifications?
Finally, isn't the fact that Apple refused to even compete in CD rights management a strong argument that it put legality before profitability?
Apple to Split into Apple Computer & Apple Electronics