I don't think you will see record labels disappear, simply because mid-level bands still need the support and resources they provide.
Artists who are bypassing labels can afford too, because they have the support already set up. But a hot, up and coming band does not have the marketing, touring and recording support and resources to be successful with a label.
I also do not think you will see artist going to exclusive internet sales. People still want to have that disc in their hands and on their shelves. Hi-tech audiophiles know that there is no format in computer based music that can compare to the quality of a CD.