ars technica has a good article summarizing the RIAA and MPAA's new attempts to pass copyright legislation. The problem is the wording is way too broad and would in fact prevent the invention of any new technologies to manipulate digital media.
The problem is the phrase: "permit customary historic use of broadcast content by consumers to the extent such use is consistent with applicable law;". See, "customary historic use" means no new stuff. If you have some innovative new thing to do with digital music (like say invent an iPod or a Tivo for digital radio) you can't without the permission of the RIAA and MPAA.
Look, I don't believe in stealing music or movies, that's wrong. But I do think I have the right to rip my CDs to digital form so I can use it on any device I want. I also might want to copy or send the media from one device I own to another. I believe it's the content and not the format that should matter. I should only have to pay for a song or movie, once. That should be enough to reward the creators.
If there's a format change I might pay for convenience (I might buy a new HD DVD if it's easy or there's new stuff on it but I also want to be able to record a digital HD broadcast). If I pay for cable and miss an episode of Battlestar Galactica (maybe my Tivo failed) can't I copy it from a friend to watch? Can't I copy it from a stranger? I already paid for it. If I have something I've paid for in digital form, shouldn't I be able to play it on anything I own (like my phone) for free?
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