You think the average price paid was 2.5GBP, i.e. $5.
1.2 million * $5 (2.5GBP) = $6 million, others estimate it at $10 million (I think it's higher too, these are fans buying not regular punters and I don't think anyone would pay less than 5 units of their own currency).
"hail to the thief" their last album reportedly sold 300k in the first week including preorders, i.e. $1.8 million, and in total over it's complete sales run sold I think 2,300,000 copies.
i.e. In total for the full run of their records, that would be $13.8 million if your 3GBP royalty figure is correct .
But lets look at that 3GBP figure, since I think it's too high.
I think that on an $11 Amazon album, the retail & distribution margin is 50% leaving $5.5, production say $1, record company, say $2, leaving $2.5 for the band. Even if Amazon discount heavily, we're still unlikely to get $6 for the band.
So for comparison, we're looking at only $750k for the same period via record royalties and $6 million IN TOTAL ROYALTIES for the full run of the album.
So I think they made more from the downloads alone, in the initial launch alone, than they made from the entire sales run of their previous album.
Oh and as for the 160kbps malarky, iTunes regular is only 128kbps (128kbps AAC is equivalent to 160kbps MP3). But if you've bought the download and want a higher quality rip, why not download a copy from p2p at 256kbps when it arrives. You've paid for it after all.
BTW, it's a great album when you get into it, congrats to RH.