Napster set themselves up for failure when they gave away copy righted music for free. When they got sued , for giving away music, it ruined theyre buisness and when they tried to start up again, they were beat by Apple's Itunes in music downloading software. At that time, free ilegal ones also were used rather then Napster.
Morally, downloading music is wrong, but people these days don't really care anymore, the artists are rich so they think they could be fine without the extra bucks from them buying their CD. Downloading music these days is very common within the average household. Artists reconize this and realize that they wont make as much money selling CD's as they did in the past.