To answer the first question, I would be willing to give away my music for free. I think that true music shouldn't cost money. It should be able to be heard from anyone who wants to listen. On the other hand, people have to get paid. Making music may not just be their job, but it is their life. When people can't make money off of what they are working on, it doesn't make much sense. Musicians spend so many hours working away to make us, their listeners, good music. When they don't get much credit... it just doesn't make sense. So for this first question, I don't know which side I'm on.
I do think that music, photographs, stories, etc. found on the internet are public property. If you are willing to put your personal or work information on the internet, you have to understand that there are some people who will steal your material. The internet has it's many pros and cons, and I think people don't realize the cons or the risk their taking when putting their information online. I personally wouldn't download free music, but I know for a fact that some people wouldn't think twice when hearing "free music".
I think there is a relationship between plagrism and downloading free music. Both take advantage of the artist and don't make them any money. But the two terms are found used in very different situations. For example, maybe a singer/songwriter wannabe wants to be famous and pretends to sing someone else's song. Or, there is the person who thinks their getting a fantastic deal by downloading free music.
I don't really think downloading free music is okay, but in these times some people will jump at the opportunity. I don't know how this issue will pan out in the end. I'm interested to find out.