
As an aside, CD is in fact a lossy recording format, it's just a high quality one. MP3 or AAC or WMA or FLAC or whatever can sound every bit as good as CD can, it just depends on how you do it and the equipment you reproduce the audio on in combination with your hearing. Recoding from one lossy format to another is where the problems usually start.
Anyway, my main points. Comparing this to a format change isn't a good comparison; of course DVDs don't play on a VHS player, that would be stupid. However, this is digital content that is quite capable of being played on a PC, Mac, Zune, iPod, Archos, or any number of other brand names some of which are unpronouncable to a typical Brit like myself.
The problem here is the artificial restriction that is being placed on the content. It's more like Sony Pictures releasing a film on DVD, but restricting it in such a way as that you can only play it back on Sony branded DVD players.
Sure, you could circumvent the protection on a PC with some clever software, rip the DVD, recode it, and burn it to a DVD-R, and watch it on your Toshiba DVD player, but....
1. why should you?
2. it's technically illegal as you're circumventing DRM
3. you loose quality (assuming it's a DVD9 source and DVD5 blank)
It's the same here. When you buy from iTunes, you shouldn't have to burn to disc and re-rip; you loose quality for starters; re-encoding an already lossy format is never a good idea (always avoid transcoding if you can) and it costs you in time and effort, not to mention a blank disc if you don't use an image drive. I suspect it is also against the T&Cs for iTunes or the DMCA or it's European equivalents, though I do not know this for sure. For me, it's more about the principle and the hassle of having to circumvent these restrictions and the legality is secondary as I know that I wouldn't be doing anything "immoral" even if it were technically illegal.
Yes, the music studios are requiring DRM to a degree, but it's naive to say that Apple have no part in that decision or choice; they could quite easily put pressure on the studios to allow DRM free, it's just they choose not to. If they are forced to by the Norwegian courts, more power to Norway...
Cheers,
Rolf.
Disclosure: I am an iPod fan, I have a couple, I use iTunes (though I don't like it) but I don't buy music from there because of these restrictions and the quality issues.