The reasoning behind the policy is loss shifting. You get your music stolen then you buy again. There's no profit in allowing you to avoid losing out, it would make them the victim of crime and not you.
As I see it, you buy the physical CD but only purchase a licence to listen to the music on it.
As no backups are allowed in the UK compared to the own-use backup law of the USA, and we pay twice as much, it would be arguable that they should supply two copies, or at least replace for one time, any defective or damaged disks free of charge.
When I buy CD's or DVD's for my own use storing data or my own works, should I invoice the RCAA (or whoever) for a refund of the levy charged on the disks?
Maybe we should start a trend of burying them in invoices and replacement disk claims...
Everyone says that as consumers we have no power in deal making, that is forgetting that their very existence depends on the money that we give them. Maybe we should think about rationing that income to focus their minds a bit.