I believe you are incorrect. The DMCA still says you may not defeat the copy protection on any storage medium, and DVD's cp blocks copying. It was loosened up finally for schools and other fair use (as it should have been from the start), but that almost certainly doesn't include you at home. The compromise was the digital copy included with some DVDs and BDs.
I would be pretty foolish if I bought Handbrake.
But, weren't we talking about CDs?
You're forgetting that the U.S. Copyright Office can issue DMCA anticircumvention exemptions. The first one currently allows you to break the Content Scrambling System DRM the DVD format uses for educational purposes, documentary creation and
noncommercial videos. Keep in mind that the only exceptions are the ones issued by the copyright office and if the exemption isn't renewed every three years, it expires. Until that point in time though, you're not planning on marketing or redistributing your backup copies, are you?
Anyway it doesn't matter for music C.D.s, since
DRM isn't part of the Red Book standard. That's part of what made Sony's rootkit so controversial, nobody was expecting them to break their own standard. It's also half of why I'll continue to buy all my music on CD. I dislike buying media unless I have
full power over the use of my personal copy for my personal purposes.
Also for the moment, I prefer iTunes per song purchase method better than subscription services, since I'm not always listening to music. There are substantial periods of time where I don't listen to any
phonorecords at all and when I do, I often listen to repeat tracks. Paying for an infinitely large library of music, 99.99% of which I won't even listen to, during an off month where I'm not really in the mood to listen to much music seems like a huge waste. I know that there are others who would benefit from such a service but that's why you need to have multiple services: to cater to multiple customer's needs.
However it probably doesn't matter much, Sony's extremely abusive mistrust of their customers makes me weary of to buying anything from them. I'm not ready to quit them cold turkey quite yet since I do like their work with consumer electronics but I might if they continue this unfortunate trend.