Quick, review the Amazon S3 bandwidth pricing chart!
Now calculate how much bandwidth you're using via the idiotic model of copying the same song you're listening to ten times a day, ten times. Multiply that by ten hours or however long you're sitting there with headphones on taking money out of Fred Wilson's pocket while you pretend you're coding the next great site that's going to put money back into it.
Author states that SoundCloud is "made up mostly of music connoisseurs who would gladly pay for service." Ha!
The sad reality of the music business is that there's a very narrow age range when most people are "really into music" and it tends to correspond with a period of time when those people don't have very much money to spend.
Now that I have money to spend, I simply do not have time to waddle through the anti-curated wasteland that is SoundCloud. Slap enough ads on it (especially ones that directly get in the way of trying to discover something to listen to) and you've guaranteed I won't go there.