We don't know it's a sweet deal. My gut feeling is that it isn't, but that's by-the-by. We don't know anything.

Slightly more legit? I think the phrase you are looking for is "completely legit, as opposed to some of the others who are lawsuit-bait-on-a-stick.

From the point of view of the users it really is only slightly more legit. From the point of view of the content providers, slightly less legit is not the same as illegal, and from the point of view of the service providers, legal and and a one-off court case is better than legal and ongoing licensing fees.

You also appear to be assuming that Spotify are the only licensed game in town, and will continue to be. This is, of course, trivially untrue (Rhapsody).

Only if that other provider had the same kind of licenses with the record labels. At this point, Spotify is far ahead of the pack at that game.

You appear to be assuming that getting those licenses is difficult. It really isn't. If Spotify managed it, any competent competitor can also do it -- after all, the labels have no particular loyalty to a small Swedish online radio network.