The RIAA simply MUST NOT find out about this.
It's too good to be true.
Actually, why not? Keep the low quality and lack of HTF and new releases, slap on some DRM software and some "click here to buy" advertisements, and it'd actually be some good marketing. It'd also allow people to have a "library" to rent from without traditional libraries letting people borrow CDs (which usually get ripped and effectively "stolen" anyway...).
Besides, the main purpose I see for a site like this is education. At long last, we can make people listen to classic albums without having to buy them copies! We can hear the albums and talk about them without having to buy all of them! Granted, it makes the list of stuff we intend to buy longer (which works well for the RIAA anyway), but I still see this as being useful mainly for educational purposes - which counts as fair use anyway. The site's not thorough enough on the new stuff to take away too much in sales, and I doubt people are really going to pick albums they're not interested in already to listen to anyway. If anything, we'll decide to purchase more stuff after enjoying this. At some point, the RIAA has to be willing to stand by their products and allow their quality to speak for itself.