Did iTunes kill the music industry?

With the recent release of the new iPhones and 10 years since the opening of the iTunes store, its time to take a look and see just how much of an effect its introduction has had on the industry.
The opinions surrounding iTunes range from it being the saving grace of music to it being the final nail in the coffin. I'm not denying that online music was rife prior to iTunes, with the existence of Napster and sites such as MP3.com, but the question has to be asked as to whether ease of access has endangered the existence of offline, real-world music stores, such as the recently collapsed and reconstructed retailer 'HMV'. It is also questionable as to what effect this has on the artist, as although it is easier and cheaper to sell their singles online, it is also cheaper to buy them and thus it could be said that it minimises the originally substantial profit margin that was available to artists of the 90's.
It should also be recognised that with official music downloading, comes unofficial music downloading which leads to no profits being passed on to the record companies or their artists. It may be easier and more efficient for the public, but one cannot deny the value of a physical CD or LP.
However, the digital revolution has also allowed for smaller and less mainstream bands to hit the singles charts and to be streamed worldwide to their niche market of consumers, as it is now easier to introduce music to the public without big name record company backing.

All of this suggests that whilst digital music is better for members of the public, it does damage bigger names in the music industry, but with the amount of money these artists pull in hourly, how much does it really matter to us little people sitting behind our mobile phone and laptop screens?