Rather pointedly titled article, but there is some truth in the matter. Actually, the point seems to be that iPod users are reading existing CDs into AAC or mp3 format to be used on iPods. There is nothing wrong with this.

I have almost 400 CDs worth of music on my iPod (20 GB version). Of those tracks about one tenth were bought from the iTunes store. The rest I read from CDs. In fact, I hardly listen to CDs any more. Although I still buy CDs (when they are cheaper the iTunes Store or not available there), I read them right away to the iPod.

Lst weeked I converted the tracks which were in mp3 format to AAC format to conserve disk space. About 7 GB worth of music got converted, which resulted in savings of about 2 GB. So now I can fit more music to the iPod, as there is free space for about 50 albums or so.