You're right about the consumer base. The ones who Starbucks will target spend more money and almost certainly are willing to pay for convenience. For suburban adults, the soccer mom type, and for metro city dwellers who pass 5 Starbucks during a 10 minute walk this will be a much more attractive way to buy music.

I don't think it will steal customers from Apple in the short run but it will just be much more profitable then iTunes. People who have computers and broadband still steal more music then buy from Apple. But if this model works it will threaten places like bestbuy and Tower and will be another alternative to iTunes and it will hurt sales over time.

And I don't think anyone is worried about Europe just yet. If it works in North America and becomes popular and trendy Europe will line up to emulate them.