As a musician myself, I have to say that I find it very interesting. If I ever have an album or other purchaseable material, I'll definitely try to sell it for bitcoin as well.
I am thinking... how well would a bitcoin-driven on-demand CD-selling website do?
I would lean towards digital distribution instead, but you could offer physical mediums as well. . Getting some bigger names accepting donations/payment would be brilliant.
It could be implemented for street musicians/artists too. And I don't think it would be too complicated with QR codes for example.