They have something against vendors (like Google and Apple) prematurely pulling out their app from their respective markets/stores because of their ignorance of the law.
I look at the actions of Google in two ways, they have either received a lot of complaints from the governing body and their hand was forced or they really are releasing their own cloud music store and they are getting rid of potential competitors.
I hope its the first reason as I really like Google and their ethics.
I have had personal dealings with the music industry though and how licenses work. In some cases they do not even check the legality of a music provider and presume they are acting illegally because their business model looks illegal. They are going against their own policy of innovation to get them out the mess they are in.
I hate to say it but I think if/when Apple/Google release their own version of the cloud music player, the rest are screwed anyway. They will find some way of making the software so integrated with their phones that it's pointless to use any 3rd party software like Spotify or Grooveshark.
Google on the other hand us HOPEFULLY working on something great for their Android devices..
I also believe that is one of the main reasons they are labeled as "the boogieman," in addition to some pretty boneheaded PR moves.
So, this isn't a comprehensive answer, but hopefully shines some light on where HTML5 actually is with regard to providing an experience similar to a native app.