I operate "Radio Buena Vista" on Live 365, and my day job is managing a college radio station with a web stream, so I'm doubly screwed!
Live 365 and other internet entities are appealing the decision, but this has been in the works for several years, and I doubt they'll reverse course. There is too much money for corporate radio at stake, and they don't want competition from people who will actually provide a nice alternative to the crap they serve up.
Right now, we (broadcasters) pay a premium to Live 365 which includes royalty payments (whether we're broadcasting licensed music or not - it's one flat rate for everyone.) It's a reasonable rate right now, but when these rules go into effect, it will depend on how Live 365 passes on the costs as to whether I (and assume my other Disney radio friends) will survive. My station is non-commercial, and the best I can hope for is a minimum fee of $500. Plus whatever Live 365 charges for their service. That's getting to be an expensive hobby!
Your station is my favorite! I hope you can still operate