I suppose I'm going to be contrarian here....
I don't think there is really any blame to be thrown around: Business do what they think best, and if it doesn't make money, they go under. I also think trying to back-seat business plan them isn't effective: Being in the hot seat (with your own job, or money, or even the VC's money) brings a very different viewpoint from ours as potential users. I've been there (both with and without VC money at different times.)
While doing it yourself, and "indie web" ideas are nice (I am a big old Socialist, after all) - there is value in commercial services which you just can't reproduce on your own web site. If you care about those things (and the evidence says many people do), then those big services have value. You may not like the idea of getting bandwidth / storage / operations / exposure for free in exchange for the company making money off advertising / licensing / unicorn dust / whatever.... but many do think that value proposition is worth it.
BC vs. SC only serves to emphasize that there are many points on this spectrum of models. And the success of many of the other large players - measured by their continued existence (not if the unit itself makes money) - is enough to show that there are many possible blooming flowers here. I think going it alone / distributed web / yer own thing - is perfectly valid - but so are all the others. Use what you like.
I think hand wringing over various on-line music delivery models is small beans: The real threat here is Net Neutrality. If that goes - then all is lost because it will violently tip the scales as to what can continue to exist, heavily favoring very large business enterprises, and completely shutting out small and independent options.