Are we better off with one entity that offers horrible funding terms and exploits/chooses artists for maximum profit? Or are we better off with an industry of smaller players that compete to offer the best terms to the most talented musicians?

Decentralizing the funding while messy, scary and potentially hazardous is a better path for all.

I also think there's room for both the traditionally funded musician model and the self-service or smaller label models. The problem is when there is no choice which leads to abuse.