I think what they really want is for you to buy the cd for your cd player, and then buy the same content from iTunes for your iPod.
You can edit and manipulate the mp3 or aac file ripped from the CD. Why shouldn't you be able to edit a song you bought? It's silly.
It's funny reading people defending Apple's DRM. Replace Apple with Microsoft and it's a different issue.
Record companies are the ones forcing both Apple and Microsoft to put DRM in their files. I don't blame Apple or Microsoft for the DRM. DRM is not going to go away so get used to it or buy CDs!