How the story about your friend doing something (supposedly) illegal leads to conclusion that "all the arguments for their legality are largely moot"?

Especially after you tell in the very first sentence of your comment to leave arguments about legality aside.

Is this how you propose to judge the legality of a service?

            Can overcome technological restrictions
            to save music into a file instead of letting
            the browser download and play it immediately?
                |                            |
                |                            |
               Yes                           No
                |                            |
                |                            |
            Is the resulting MP3 ---- No ----+---> Legal   
            of high quality? 
                |
                |
               Yes
                |
                +--------------------------------> Illegal!