Re: He did not break the rules
Lots of people are not keen on the model you propose, including Google, the collecting societies, and the UK Intellectual Property Office.
What you've just described as the current state of play is Collective Licensing. This is/was justified when the cost and bother of figuring out who should get paid for what exceeded the pay available. It's a relic of the analogue era. Nowadays its possible, via metadata, to log exactly what got played to whom, when, and for rightsholders to be paid accurately.
How curious, then, that the trend in copyright is towards more collective licensing - throwing everything in the pot and only really paying the biggest players - and away from what digital actually makes possible: paying people accurately.
As always: cui bono? Follow the money. It mostly ends up in Mountain View.