I do not unconditionally celebrate the Internet, particularly its intrusion into classical music. As replacements for the record store, Amazon and iTunes have become necessary evils. Typical commercial downloads are sonic shadows of the superior sound of CDs. Blogs ghettoize critics. YouTube is pretty much a toy.
I am not an expert on the business model for classical music, but in general, the problem is not the internet's "intrusion into classical music" -- the problem is the classical music community not embracing the internet. If you're not happy with the classical music offerings online, do something about it yourself. But if you don't embrace the internet, you'll never reach that next generation of fans.