Hell, that's what "Audio CD-Rs" are in the US -- blank CD-Rs, indistinguishable from Data ones, only with a surchage for recording music.
Um, the context of the "down 22%" number needs closer examination. It's not "down 22% overall". It's "Down 22% in the seven weeks following the announcement". Illegal download traffic follows a pattern, where it drops off for a month or so after each such announcement or big bust. If they desensitize the public by busting all the time, downloads won't drop off at all.
The recording industry is in a bad way with regards to making music.