Former P2P file-swapping app Kazaa is relaunching as a legit service, per this bombastic press release. All four major labels plus some independents have entered into content provider agreements.

Here’s where the new service gets hairy. A $19.98 monthly fee gets you unlimited downloads. That are DRM-laden and limited to three PCs and no portable media player solution. Of course once the subscription ends, the downloads will cease working.

Meanwhile, already established companies like Rhapsody and Napster offer all-you-can-eat options for $15 monthly at the most. Yes, they’re streaming and not downloads, but what good is a Kazaa download if it’s restricted to three PCs and no portables? Not to mention the risk of purchasing a DRM download from a service that’s not guaranteed to be around forever and authenticate the downloads, as we saw with Walmart’s digital store.

Today’s announcement concludes “Kazaa expects a steady growth in its customer numbers but prefers to let its results do the talking so stay tuned for our next press release.”

Hypebot bets there won’t be a second press release. What do you think? Do we really need another digital music store, anyway?