I find your interpretation of the law doubtful. My house is still my house even if I have friends over. If I have a legal copy of the song I can play it without it being a "public performance" (unless I sell tickets.) I also doubt that someone blasting their car stereo while driving is considered a public performance, although they might be guilty of violating noise ordinances. (Has anyone ever been citied for violating noise ordinances wile playing Steely Dan?)
As for blasting Steely Dan out of a car radio, guilty but never charged. Any Major Dude Will Tell You.