It's not advertising. It's the same product. He makes the product, then you can choose to give him money if you want to. "Piracy" doesn't hurt his business model.
He makes money from the product for sale, even if it's the same one.
If this is not clear, you can try a thought experiment: how much money would he make if he discontinued selling the product for some amount of money (and did not substitute it with donations or something else)? How much money would he make if he stopped giving it away for free? Arguable less, but > 0, no?
I guess I don't understand. He puts the music on his website for free. People give him money for this music, using the button on his website that says "PAY ANYTHING" http://www.pronobozo.com/music/ So... he puts out his music for free, and people pay him for it.
How much money would he make if he stopped giving it away for free? About the same, since his music is CC licensed and allows free distribution anyway. If he stopped licensing it that way, he would lose a lot of money because a lot of his supporters are pro-free culture types. It would be a different business model than the one he's using now.