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I'll say it again. Google loves end product, and if it's free for surfers, the better. Type in any band/artist and odds are it's their (and by their I mean free, 'autogenerated by youtube') youtube channel, certainly top 5 if not 3.
Why? Because give anyone the choice of free or paid, and the vast majority want free.
Not to mention: Free = 100s of thousands of natural backlinks, and despite what's been said in this thread, backlinks rule. It's a vicious cycle that just breeds the 'everything is free on the internet' mentality we now have that absolutely dominates popular thought.
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