It's not like the record companies were completely blameless. They didn't care about their customers, they only cared about the artists they signed because they were legally obligated to, and no one who cares about music is mourning their downfall.
The slogan wasn't Download Mix Burn. Apple has always been strong on the IP end of things.
The British record industry in the Eighties had a "home taping is killing music" campaign, the could've updated it to "home burning is killing music."
Rip meant taking physical audio CD's you, or anyone you knew, owned. One kid buys a CD, and the next day it's in every kid in the school's iTunes library. I think iTunes even had an ability to just grab and copy MP3s from anybody's library that was broadcasting on the network, circa 2006-07.
"And the electronics industry's attitude toward the labels is summed up by an Apple slogan: Rip. Mix. Burn. Which, a music executive once told me, translates into "Fuck you, record labels."
http://www.wired.com/2003/02/dirge/