I personally think the fact that songs are available cheap and easy to get negates any worry about people recording from the radio and distributing on the 'net. Who wants to take that kind of time when you can tag it and download it and it's just $1?
Though, in their defense, I've grabbed and loaded a lot of unreleased live recordings onto our HD2. To me, hearing the same-old-same-old gets boring, but to hear a different, live version of a chart hit is refreshing. We get a lot of "where can I get that?" emails, too, which tells me I'm on track. I can see my hand getting slapped if those ever got into the wild.
Back to recording devices. FWIW, I frequently jack my BA Recepter into the computer for recording. Results are fantastic. Granted, it's an analog connection, but, to my ears, the end result is usually better than a consumer-grade mp3.
Walking the fine line between jaw-dropping and a plain ol' yawn.