It's not as drastic as you think. It just means they won't host anything themselves, but *******s rely on peer-to-peer sharing anyway.
Honestly, Spotify just needs to step up it's game in the U.S. and it could really dominate. Being able to access an artist's discography with 1 click >>>>>>>>> having to ******* it, fix the tags, realize one of the tracks skips, realize you don't have a bonus track, etc. etc.