This article is making the engineer's mistake regarding reasoning about copyright infringement and the law. The courts do not care how the copy was made, they care about what markets the copying would allow someone to get into. "Cloud DVRs are OK but only if the kernel, filesystem, and hardware take great pains to ensure separate physical storage locations for and no compression on each customer-created copy" is absu…
It's possible that the courts/law are so absurd that they could be wrong. Rarely is that considered.
In practice, the process for this is completely broken, so we have a system where the judicial branch pretends to divinate intent from the tea-leaves of legislation, even when it's clear that there could not possibly have been any informed intent because major relevant details were simply not known at the time.
It's not great, but it's better than a system where the judicial branch just does anything it wants.
All this said, instant communication and computers almost certainly introduced better forms of judicial and legislative process that haven't been experimented with because of inertia. I wouldn't volunteer our system as the guinea pig, but I hope that somebody gets around to experimenting with this, because our system sucks hard in a bunch of ways that seem like they are probably fixable.