Indeed, taken away from the context of MP3 and looked at in terms of content distribution, this was a good, even great ruling. People should not be archiving content in a degraded format and handing it out, no matter what hoops people would have to jump through to get it. I don't want to have to allow that with my writings, for instance. (The word "degraded" is importent... if it's perfect, then it's more like a cache, which is another issue entirely.)