Very interesting discussion. From my lowly viewpoint with no one ever having recorded one of my songs, I'd be tempted to let them do it for free, depending on circumstances. But only with my permission. I fully agree that a songwriter should be paid for the use of their song.

I searched and found the writers of all non-trad songs on my ShoreGrass albums. The ones I couldn't pay online through Harry Fox Agency were contacted directly. One gave me permission to use the song with no payment. One took a long time to find, and had to direct me to another company that held the rights to his song. I hope that someone would go to the same trouble to use a song of mine. (Please! Please use a song of mine! haha)