"AFAIK there's no problem with burning a CD and re-ripping to MP3."
I guess you are not actually breaking the encryption. it does seem odd that Apple would require DRM and then make it so easy to get around it.
It's the labels/record companies requiring DRM. Apple provides the least draconian system that will satisfy the idiots there, which (while they don't come right out and say it) is stupidly easy to circumvent.
Don't like DRM? Get rid of the RIAA.