I've admitted previously that I'm somewhat of a tech law groupy. The recent court case involving Kaleidesape and the DVD Copy Control Association will likely have repurcussions across a number of other cases. In short, the Judge stated (links here) that it's not illegal for someone who owns a DVD to change it's media. My read on it (and I'm probably wrong) is that someone forgot to include the definition of "authorized use" in the license agreement.
If so, expect this hole to be closed in the near future.