This is the best iPod killer yet.
LOL I see your point, but generally... I'm still going to call this a Bad Thing.
The reason is that any persistence of individualized rules for use of protected digital media, that differ from label to label, or artist to artist, is going to stagnate the medium. And even if the iPod has no such difference, it casts a specter on digital purchasing... which I, at least, support and want to see succeed.
Also it sets a precedent in future negotiations with Apple and other non-sucky providers.