IMHO, this is over-enthusiastic. When Katz says:
"iTunes Radio will quickly discover that Radio sounds more consistent than their playlists, that they don’t have to turn their volume controls up and down when listening to Radio"
No, the customer will discover that local playback sounds much "better". Louder is still "better" from the perspective of the average music customer and he will intuitively move to another player. I bet Apple will face an incredible shit-storm if they'd force this thing.
10$ that apple hits the breaks 3 month of evaluation!
Also, the world doesn't belong to apple. The whole independent music industry players (not just indie rock

) already organized themselves with their own platforms such as Juno, Beatport, Boomkat and most of all: Most half way modern labels are having great success running their own infrastructure/shop/streaming service without third party cuts. Apple has relevant market power weight in the US mainstream (or what's left of it), but that's it. It's totally different outside the US.