So what if some company did something similar to Zediva, but with a model where customers "buy" the DVDs and then sell them back to the company when they are done streaming it? Basically use first sale to set up a streaming service where you don't need to deal with licensing issues. I pay $20/month for access to the servers and infrastructure. I get $10 of that to use as purchasing credit. Movies cost anywhere from $…
Courts aren't stupid. Judges in particular get really annoyed if you think they'll fall for it. "I'll just do X' instead of X and then everything is legal!"
Except... this is exactly what has happened.