Perfectly legal and possible. You can have FIVE computers/devices authorized to have your music library on them at any one time. Buy a new one? Authorize it, and de-authorize the old one.
Yeasir just jump trough these hoops and you too can put your legally paid for media anywhere you wish (as long as apple sez its OK...) not to mention that my wife and daughter were mega upset when they realized they would never figure out the procedure.
And of course I added insult to injury when I transferred my library with a simple connection and a couple of clicks of the mouse.
You all can keep your Islave units I'll enjoy my no-strings attached media player.