> Do any of us download and/or listen to MP3s?

Yes. I don't go looking for pirated songs; MP3 is a handy way to hear
music by people with no other means of distribution.

> Do any of us have MP3 files of pieces on the web, either for sale or to give
> away?

http://members.tripod.com/~slinkP/music.html
...there's a silly multitrack acoustic song of mine there, and I have an
MP3 of an older computer-music piece made with Rt and cmix back in '92,
but I keep forgetting to upload that one.
 
> Does MP3 sound really good? Is it really adequate for complex music?

Probably adequate, but certainly by no means perfect. Sometimes there
are "whooshing" phase problems, and probably more subtle defects I
haven't noticed yet (I haven't yet heard MP3 on a really good sound
system).

I haven't seen anyone mention it in this thread yet, but there's another
format called Twin VQF (it's part of the MP4 project) which claims
better compression ratio AND better sound quality. I haven't yet heard
it for myself, but it's worth a look.
http://www.vqf.com/
 
> What are our plans to distribute, publish, or make money off our music?

Aw, don't ask. I'm feeling pessimistic lately.
 
> What would we LIKE to be able to do with our music on the Web?

Give stuff away, and advertise stuff I want to sell.

> Do we want to
> handle all middle-man functions ourselves,
r do we want someone to take on
> the role of a record company, even if they just manage a Web site and broker
> payment?

Hmm... all of the above?