That's unfair. The government does appear (from my reading of the article above) to have done what they said. The industry have now challenged the basis of the government's action in the High Court, and won.
They (gov't) aren't jumping back into that battle right now because in the interim our political world has tilted 45° and a lot of more vital stuff is sliding towards the edge at high speed.
Methinks the music industry protesteth too much. First it was "home taping is killing music". I don't remember anyone holding a wake for the death of music then. Ripping CDs has been going on since music was first put on CD. Music isn't pushing up the daisies just yet. Despite legal and illegal streaming Sony Music is still making a decent profit.
I don't see how buying a music track from Amazon then passing it on to friends is going to save any music industry, either. The fact is, people want to listen to high quality MP3, FLAC or Ogg Vorbis files to play on music players. The industry want to sell us CDs. Amazon want to sell us either unprotected but possibly low quality MP3 files, or CDs, plus downloadable MP3s as a freebie. Supply and demand, go take a ride!