That may be, but it worked. Several years ago, Clear Channel offered free online airplay to unsigned artists. They had to sign a release for airplay and in it was aclause that absolved CC of any royalties. The Musicians Union and the Future of Music Coalition raised a huge stink, threatened legal action, and CC ultimately backed down and removed the clause. But that's why they don't promote local bands any more.
Independent artists and labels are at odds with the RIAA on this royalty, and many have testified in Congress against it. But if it becomes law, it will create a legal nightmare for radio stations that is currently a reality for anyone who has the misfortune of working in digital media. The music industry says that satellite and internet radio pay a performance royalty. But they are also in far worse financial shape than terrestrial radio. This is a side of this royalty that should be discussed in front of Congress, because they clearly aren't getting the full story.
By the way, talk to people who work at auto plants in the south, where the the big 3 went to avoid union contracts in Detroit. They will tell you that the UAW cried foul and screamed for laws that required the car companies to bring the unions in. If you make a car, and it becomes successful, I promise you that the UAW will be knocking on your door, and will get the government to require you to let them pitch your employees.