I think it's going to be quite hard to re-work the model now but absolutely feel that consumers were given too much too soon too cheap.
For most people, there's no incentive to buy an album anymore when they can listen to it for free and then add the tracks they like to their playlists. I think it would have made far more sense to make streaming a 'Singles only' affair so that people still had to pay for the album if they wanted more. I suppose there is, however, the argument that, if this was the case, people would just illegally download the albums rather than buy them anyway.
I'd be interested to know how many people turned from illegal downloading to paid-for-streaming services or if, actually, it was just people who paid for their music anyway who now use Spotify etc and those who never paid, never will.
Of course, the One Directions/Justin Biebers of the world make enough money from endorsements and stadium shows to not worry about earnings from the actual music but for small to medium sized acts, something really has to be done. I remember La Roux tweeting that she earns £100 a quarter from Spotify. With non-existent album sales, how can that be fair? I'm sure she would have done OK from the 1st album but for other acts like that (with top 10 albums that disappear quickly), how can their careers be sustainable?