Earlier quoted context omitted.
Yes. You've already distributed the binary to their machine and are using their resources to store it. In my view, it belongs to them and they should have full access.
By that logic, do you think that after someone has paid for 1 month of netflix, and downloaded their entire catalog to your phone for offline viewing, that all the videos "belongs to them and they should have full access"?
Obviously it does not: your downloads expire after a certain amount of time, and if you cancel your subscription, you won't be able to get a key to decrypt the files.
Companies are free to try to put restrictions on that sort of thing, but I think if customers are able to circumvent those restrictions (the DMCA anti-circumvention laws notwithstanding), the company should not get to complain about this.