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!
I am the Founder and Editor-in-chief of New Rising Media. You can follow me on Twitter @MrJasonEngland.