The key words there were 'future hardware'. The newly released Encore line of products do not have this functionality, and any existing product owners (Premier Line) that want to integrate with the new Encore line also have to give up any ripping functionality.Are you sure? My understanding is that Kaleidescape still does exactly this. They are only allowed to do so, because the disc needs to be in the player or the disc vault. But the actual playback happens from the server.
EDIT: Just to clarify, the Alto and Strato don't 'rip' the content of the disc, they simply 'catalog' the disc, by creating a meta-data entry on the player so the movie is shown on the movie wall, and require the disc to be inserted for playback. Only if a disc to digital purchase is made, or UV code applied, can the movie be downloaded from the Kal store for disc free playback.