But ringtones get their *power* from the songs they are abbreviations of. They are the electronic equivalent of a band T-shirt. A band T-shirt couldn't exist without the band that it is advertising. So unless they start making 3-minute long ringtones of entire songs, I think it's safe to say people will carry on listening (downloading/buying from shops on whatever format) to music in that conventional way.
...On the other hand, the situation you've described is not all that different from Spotify. With spotify you listen to music 'on a whim' like that, and you don't need to 'own' any music at all. But I think Spotify is actually a healthy development, because it pays musicians money.
Spotify's a good start, and is playing a role in changing the way we 'own' music. Those behind Spotify also have the good sense to offer levels of engagement for it's user through a free and subscripted choice.
Half of my flat is taken up not by music, but by the product music has been packaged within for the last 60 years, but now we are able to have our music collections contained within an external hard drive, or as Spotify is developing, on a server somewhere else in netword.
If Spotify can marry up the storing and playing of music with payment to the artists then I think that is going to feel like a great option to younger generations with no interest in filling their world's with decrepit old junk like records and CDs. Kids want to have a world in the mobile phone, or their notebook, laptop....they don't want to collect - album art means nothing to them.
Infact, Spotify could expand itself to becoming a fully live online music community, with events listings, podcasts, and live broadcast, allowing bands to market themselves through their song plays etc, and build up their followings etc...this could feed into bigger live events and showcases which could be worldwide, involve many countries and types of music, involving known and unknown acts etc.
The death of the music industry may just be the re-birth of musical freedom and collaborative, honest, music.
Musicians will always be required because music will always be required - it's like water and air to many of us. making money out of music has never been easy, but there could be more chance as the industry shuts it doors and our ears go in search of what's really out there.