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Wrong. I can buy a DVD and alter it for my own use in any manner I like and it does not violate any law. I can break it into if I like. If I want to pay someone to do that for me, that should be legal as well.

Because the law distinguishes between doing something to one's one property and not distributing it, and doing something to one's property and distributing it. As MM mentioned above, if you want to sanitize your own movie, one at a time, through an editing service, that would be fine. But they can't alter a dvd, make copies of it and distribute it. It's a clear difference, at least to me.

There is no practical difference. Think about it. If I can pay someone to alter my DVD that I have already purchased (end result is I get a DVD that I purchased that is sanitized) then I should be able to buy the DVD with that service already added to it (end result is that I get a DVD that I purchased that is sanitized). This is a case where the rules of law in this area do not make any logical sense because as a practical matter, there is no distinction.