Last.fm – the Blog · Yes, it does!
This will severely hurt revenue possibilities for musicians on the site. It's also an annoyance because I've directed countless people to my last.fm page and told them to stream the albums there. I've used the On Demand feature countless times and it was an excellent, high quality alternative to Youtube for looking up songs quickly.
Facebook does the same thing all the time: "fix" things that aren't broken. And no matter how much any one complains about it, they're too arrogant to fix it and will stick to their guns unless they start losing money. And with something like this, I doubt it will drive masses of people away... it was just a really good feature that shouldn't have been removed.