Not if you buy $2 CDs - that works out to around $200! Unfortunately a lot of people acquire their 1,000, or 10,000 song library through downloading, which works out to be $0. It's a shame, as the artists really deserve to be paid for their work. The more we pay musicians, the more feasible it is for them to devote their lives to their art, and make even better music!
I have been spending about $1,000 per year on the iTunes Store since day one. My brother has only had an iPod Touch since Christmas, and he already blew through $20 too.
I don't think one can calculate it as accurately as Intell did as quite a few people buy Cd's all over the place i.e. different countries, also there is great variation in prices-e.g. while pink floyd still its Cd's going for pretty high prices, some other artists Cd's cost less... but it definitely does cost a lot when acquired legally.