Yeah, but don't you see that Napster offers both, not just a subscription service; so everyones needs are taken care of. Believe me, for a lot of people they would much rather go the subscription route. Those other PC serve ices were too messy/confusing, Napster however, like iTunes, is cleaner and more user friendly. And for Apples apparent target market, $120/year is not unreasonable (hell, the PowerBooks can cost more than $2,500), I have already purchased that many songs from my PC iTunes. Now, being that I don't burn many albums and I don't use an iPod/MP3 player, the Napster solution is better for me...plain and simple. Basically Napster is appealing to everyone that Apple is appealing to (quality of Mac products aside) and an additional group of people as well; regardless of how large or small it is, Apple could and should be trying to target these people too. Remember I am not asking that they change their system of sales, rather that they offer more options, this would be of little cost to them and would increase the amount of people exposed to this great Apple app (again, I am a PC user)
Of note however, I have read that Steve Jobs intended iTunes for PC to mainly be a sales pitch for the PC iPods, if this is truly the case, then I must admit it would be of little advantage to sell a service which does not allow the transfer of songs to the iPod.