This is great. On one hand I'm happy that record labels and middle men are cut off from the process, on the other, being an old-fashioned music listener, I will never stop considering music as part of an album, and I will never buy a "song". I will always buy full length albums. I like real bands, not Internet phenomena. Not saying that one excludes the other, though.
But the concept is absolutely brilliant and the same is true for the execution.