Personally, I think MP3s should be ¢10

If you figure that average CD is $10-15 and has 15-20 songs on it, that works out to be less than a dollar per song -- adjusted for the fact that some songs on CD are crap and few would actually buy.

If you also account for how much physical media cost to manufacture, store, distribute, stock, shelf and sell, you can easily see how much cheaper non-physical distribution model could be without affecting content creators.

Think about how many hundreds or thousands of songs you would download without a 2nd look if they were ¢10 each.