Zappa was apparently mostly interested in making record companies' less profitable back-catalogs available for download, since they were constantly made unavailable in physical media by new releases. Nonetheless, this seems to be a very novel idea for the time. I'm not sure if there was ever any technical implementation conceived for this.
Intentionally turning this into a No True Scotsman argument: True music consumers like to consume music... not pieces of vinyl wrapped in cardboard.
In 2025 it seems most consumers seem to prefer pieces of vinyl wrapped in cardboard. Having the thing, rather than listening to or appreciating the contents of the thing.