Myspace needs to focus on what they are winning in. That is local bands and promotion for them. Almost every band has a Myspace and uses it for updates and music samples, etc... If they could rework their music section. They are already the leader in it and seem to be oblivious to it. Give indie bands a way to sell/distribute their music and promote it better on a hyperlocal scale and you win.
I must have missed it because I didn't see much to explain <i>why</i> Myspace is having problems. My .02 (why I moved to facebook): 1. it took forever for pages to load. 2. I hated the "web circa 1999" look of many user's pages. 3. Allowing songs onload of pages. 4. Lot's of spam friendings.