LALA - 10 Cent rental of a song?

Ok this is a weird/neat idea.
To me this sounds like it's a server rental service. It allows you to buy a song from the server and then the server stores it for you, but doesn't allow you to actually download and own the song. However, you can put it on your ipod? But, clearly states that there is no way to download the song??

I don't get it. Nice that you don't have to worry about losing your collection, it's all online. I think this will fail.

LINK

Comments?