So T.Rex in your post a clear point you have there is you think music should be illegal because of programs like Kazaa that make money from the Ads within the programs themselves? I understand how much money the industry loses from downloaded media but its a small chunk of the big picture, they make billions.. Im not endorsing people to go wildly downloading anything they want, if its good I buy it, if its not its gone. It's that simple.
But as for the Ads, how do you think programmers who make FREE software get paid? One of two ways.
1) User donations -- yeah not something to rely on very much at all (trust me I make free software lol).
2) Banner Ads -- Although not very lucrative, if there are enough users it more than covers the cost of hosting the website so its not an out of pocket expense.
Most of use open source programmers and freeware programmers don't program because we want to 'get rich' we program to contribute to the online communities we 'live' in.
For most of us making a program ShareWare and making people register it does not appeal to us because we believe in the freedom and free-ness of the Internet and all it entails.