They force you to make backups instead of being able to go on your account and download everything you bought if you need to again. (That is increased cost on my side, because I have to buy more hardware to do it and need to not only store it but store it again as backup.)
I sympathise with lots of your points, but this one doesn't necessarily stand up.
Cost of an external hard disk to back up my entire music library (if I had bought it all from iTunes): Approx £40
Cost of shelving to hold all my CD's: Approx £200