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Apple and Fox team up for iPod versions of movies on DVD

While everyone seems to be thinking that the new MacBookAir and iTunes Movie Rentals are the big deals introduced at MacWorld 2008, but I think it is that the studios are starting to cater to iPod owners. Fox’s DVD of Family Guy’s Blue Harvest will be the first DVD to include an iPod ready format on the disc that the user can automatically import into iTunes.

My question is why buy the DVD if I can go to Blockbuster and rent it, rip the iPod version to my computer and have that version permanently?

UPDATE:

Apparently I missed the official press release which addresses the DRM:

Once a customer buys the DVD, they insert it into their computer, enter a unique code into iTunes and iTunes automatically copies the movie to their iTunes library within minutes. Customers own the iTunes Digital Copy of the movie and it has all of the same great viewing options as other iTunes Store video content, including the ability to be viewed on a computer, iPod with video, iPhone and Apple TV. Each DVD will only transfer its iTunes Digital Copy to one iTunes library.

So this apparently handles the rental issue…for now. The rental stores like Blockbuster won’t have the actual case with the DVD so the code won’t be available. If they do have the case, I would guess they remove the code. Netflix only sends the DVD so no code there as well. Of course this raises other questions:

1. Will the code be available and thus the file if you buy a previously viewed DVD from the stores?
2. How long will it take hackers to break this code and DRM?
3. Since the movie can only be in one iTunes library, what happens when my kids, who have their own iPods and computers want to have a copy of the movie for themselves as well as me? If I let them sync to my Mac, they lose their media. I don’t see this one system limit as acceptable when that isn’t the way the movies,TV shows and music work now.