I rarely use iTunes for music purchases due to their more strict usage agreement. The music is purchased by, or on behalf of, the ultimate owners of the DVDs. Under the section of the terms you site above a user would not even be able to transfer the music to their iPod, that wouldn't be very good of Apple now would it?

This is a long, on going debate among many people, organizations and companies. At some point it might get straightened out to everyones best interest and so everyone actually understands the many agreements, laws and users rights. My point at the beginning was, 'Don't use music you shouldn't be using, that you don't pay for, or don't have the rights to use'. If that means you need to buy distribution rights to the song then you should do that.

It is up to each of us to look into licensing and make decisions based on the findings.
If anyone bases their decision on what I say alone, they are idiots, just like anyone that bases their decision on only what any one person says. Ignorance is no excuse in the eyes of the law, and 'Chuck said' is even less of a defense