Can't agree, sorry. What's bad in opening a label and releasing music? I love that music... I'd be the happiest man on this planet if there are 2 more people that feel and understand that music the same way as I do. Even if You find it be pure shit.
I think that the problem here is the audience, if they can't see what's shit and what's candy - that's their problem and you can do nothing about it.
The whole crisis could be solved by involving more people in the scene, people that are able to buy and actually will. Also selling digital media through the internet could help alot.
PS You guys are saying 'bad labels', 'shitty artists'... any names? There are plenty... but that's based on my taste.