Increase the amount of advertising.  Yes it's a discomfort; but increased regularity and companies will increase revenue, eliminating the reduced allowances.

Do not limit plays to 5 per track.  Speak of "making sure the artists whose music we all love continue to see the benefits as we grow," and doing this kind of seems hypocritical. 

Man-up in the USA.  Part of the reason for this shift is to make the service more favourable to labels overseas, ready for it's launch.  But there's not a disconnect here: we like to enjoy free songs, it's why Napster was so popular.  You'll get the same raise in piracy in the US as you inevitably will here.  Don't cave!