Interesting point, logic's not so good...

Perhaps a downloader would buy the CDs, but I think the misunderstanding comes from how much of the material you need. Frankly, I don't agree with some of the stuff that D:VD has up, because you don't need an entire album to know how a band sounds. Rare stuff, fine, but not a more or less readily available DEG single.

Even on the radio, bands will sell albums based on a maximum of 3 singles from an 12 track CD, so there's a lot of material no one hears before they get the CD. I'm not saying that that's necessarily a good thing, but that's how it goes.

As for lack of royalties, I'm not so sure the bands get that much of the take of house unless they're major bands. Merch, yes. However, there are almost no "foreign distributors" who sell anything legally. Third Stage and CD Japan are both in Japan, and yesasia has a fair amount of bootleg stuff the artists never see royalties for either.