The rise of the crowdfunded artist

Last night in the New York Times, alternative singer-songwriter Alina Simone talked about the challenges of putting out her own records after the label who released her work went bankrupt. While some artists have flourished in the new musical economy by appealing directly to the public to help finance making records, going on tour, and everything in between -- like Amanda Palmer (pictured above), who raised over $1 million via Kickstarter to fund her last album -- Simone argues this approach isn't for everyone:

What I missed most about having a label wasn’t the monetary investment, but the right to be quiet, the insulation provided from incessant self-promotion. I was a singer, not a saleswoman. Not everyone wants to be an entrepreneur. (...) even Amanda (Palmer) -- the social media queen of rock ‘n’ roll -- has worried publicly about what the future will hold for the artists who refuse to roll up their sleeves and join the self-promotional melee -- tweeting, fund-raising and “incentivizing fans” to run “jampaigns.” Most likely they’ll disappear, the reclusive artist replaced by one offering you a hoodie with her face on it.

Do you think crowdfunding can take the place of industry support? How do you feel about artists having to take more responsibility as self promoters, and fans having to take more responsibility as backers?