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Well, Steve, I am still not sure I agree with what you call DRM is DRM; I am pretty sure that is not the legal definition of DRM that was used for the DMCA. I also think that most of us who object to DRM wouldn't have any particular objections to what you described. For example, even the GPL does not prohibit someone from charging for items under GPL.. only on preventing people from then using said product as they see fit.
As for iTunes, I agree it is relatively easy to circumvent, but as I pointed out earlier, it is at the cost of quality. Since both the mp4 and mp3 codexs are lossy compression formats, you are going loose something the second time around. You may not notice, but I know people who will.
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Bill
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