Stupid you more like. Making you re-purchase music you already own in a new format is the way it's always been in the music industry, and they wanted to keep it that way by selling you digital music with DRM attached to restrict what you can do with it, and make sure they could make you re-purchase music you already owned every time they changed the format.
It's only because of rampant piracy that their plan failed, and:
1. They were forced to allow you to "format shift" music from CD to whatever digital format you wanted.
2. They had to sell music without artificial restrictions being imposed upon you.
3. They are increasingly under pressure to keep prices down.
4. They have to, grudgingly, start to accept various music streaming services and "unlimited" music offerings by charging the companies providing those services a reasonable fee so that they can stay in business.
For comparison, take a look at the film industry. For starters, they're still fighting tooth and nail anyone who wants to help you copy your DVDs to a digital format, there are lot less services around selling or renting films to you, prices are stupidly high and uncompetitive and devices to store films on are not nearly as big business as they could be.
It's been 10 years since Napster proved how willing people were to download digital media of all kinds if it was done right, and we're still waiting for good services at good prices. It's only in the last year or so that some decent services are starting to arrive for certain types of digital media, but I don't think the price is quite right just yet.