I have switched to iTunes and digital, as the result of two children and the need for space (CDs carefully packed, but gathering dust in my garage), which is why I started this thread: it's a real issue for me.
I'm not demonising Apple, but just a little more common sense would go some way:
1. Make owning the MP3/ AAC file relevant to a household/ immediate family. It wouldn't take much legislation and unless people would idiotically purchase product that their wife/ son/ daughter already own under the same roof, Apple and the artists will not lose a penny.
2. Upscale sound quality options to 320 KBPS. Not everyone listens to music through a 3mm iPhone speaker on a busy high street. Some of us require hi-fidelity. AAC is not that.
3. Stop the ridiculous practice of having "album only" bonus tracks. It's a shameless marketing tool and stops people purchasing, say, three new tracks on an album they already own on CD.
4. Keep better track of new release schedules that aren't via major labels. For example, the new Heart LP is out on 2nd October and there's no sign of a pre-order album release. No doubt it'll arrive on iTunes some time in late November.
5. More bargain bin style sale items, rather than trying to sell the majority of items at £0.99 per track or £7.99 per album (UK price). You need to flex the pricing policy to fit the market for a given product. Just good business sense in terms of what the consumer is prepared to pay.
6. And whilst we're on price: I fully understand why the price of a tune in UK is more expensive than, say, in the US (different market and inflation rates), but it's abhorrent that you'd prevent people from purchasing internationally from overseas iTunes stores. It's even credit card region based, so if I happen to be in the States I still couldn't purchase a track at US price points! Can you imagine McDonalds in New York refusing to serve you, because you're from the UK?