This deal from Napster seems to be taking advantage of iTunes+ the right way:

Now, for the first time, Napster members can get 5 MP3 downloads each month and unlimited on-demand streaming music from Napster's catalog of over 7 million songs, together, for just $5 a month...

Play just what you want, or let us pick music for you with Napster playlists, radio stations, and automix.

If there's one thing iTunes hasn't yet done, it's replace the function of the radio station. That is, I'm not bombarded with songs that I don't know but might like, especially after they've been blasted into my head so many times I can't help but associate them with this time of my life. I'm not sure Napster is going to make good with this -- it's little more, afaict, than Pandora or mp3 Baby + five downloads -- but at the same time, why not sell five tracks for $5 and bundle what makes you different? A decent selling point. No longer do they fight pay-to-play with subscription religiously, but concede the pay and expose you to the different distribution.

That said, Napster's not dead yet? Really?