I don't really think they were getting much publicity money from their current label anyway, were they? I have rarely seen much mention of them outside of Wilco circles recently. I would imagine the promotion/publicity is the primary area where they'd miss a big record label.
The whole thing with this as a model is that it still depends on bands going to a major label at some point, because otherwise they don't have the following to make it on their own. Unless you count just endless touring, but even that can't compare to the legions of fans you get from being a big name.
It is a little disheartening to me, because it seems like it's impossible for bands to do it the "right way" (i.e. without selling out and playing the role of cash cow for at least a while). But...so be it. At least there's music out there.
Speaking of Wilco, has anybody listened much to the Avett Brothers? I got them as a recommendation this past fall and listened once or twice, but didn't really spend much time with the albums. I figure Wilco enthusiasts might like them.