How to Handle Copyright

We’re all familiar with the heavy-handed tactics of the music recording studios — suing people for hundreds of thousands of dollars for having downloaded a few songs off the internet.
Fortunately, it appears that at least some of them have gotten the memo that (a) the internet exists, (b) their content can be, for better or worse, easily distributed and copied on the internet and (c) suing people only alienates their customers.
Take, for example, this video:

Several years ago, I managed to find a WMV-encoded video of a bunch of people having fun shooting machine guns in Roanoka, VA. The video happened to have an audio track of “Can’t You See” by the Marshall Tucker Band. I didn’t create the video, but figured that others might want to see it, so I uploaded it to YouTube. Since then, about 280,000 people have viewed it. Cool.
Rather than suing me for a video that had a copyrighted piece of music, BMG and YouTube have instead put a small, closable ad on the bottom of the video that allows one to purchase the song at iTunes or Amazon. Not a huge intrusion, and it makes them — in my view — look a lot better than if they had issued a DMCA complaint, taken the video down, or sued me.
I trust that other recording studios will follow in BMGs footsteps and recognize that essentially nobody makes money from YouTube videos, but that they (the recording studio) could use the popularity of some videos to promote their works. Win-win for everyone.