A major libertarian think tank did think it's an alright idea, going as far as giving away free PDF and put their entire content empire under the Creative Common Attribution. Not exactly public domain, but they don't want people to claims copyright over it and prevent the institution from being able to publish it. I heard that they are even asking for bit torrent expert and seeders. In the end, they still managed to sell a healthy amount of books.
The copyfree position is a revolution that is taking place within libertarianism. IP was a controversy, but gradually, the anti-IP position has won out. To that extent, business models are changed, too.
It could be a precursor of things to come in mainstream society.
Not sure on what basis they are demanding that money as the record label does not hold any copyright over the lyrics of a song. Song lyrics copyrights belong to the songwriter and the publisher, if the song is published.