I was at the mall today and I went to the music store. There was a corner with CDs on sale at 7.99€ and it was half-empty already. The workers were actually putting some more albums on the shelves. I had never seen a shelf almost empty in the music store and 7.99€ is definitely a reasonable price for CDs.
People are still interested in buying music legally, they're just tuned off by the exaggerate prices. More discounts will surely increase sales.