I agree. Backups are a good thing and should be allowed.
But then again, as a copyright holder of a certain something, you should be entitled to have some kind of protection or right to defend your work.
I don't really know much about this DMCA law.I hope I made it clear why I don't think there is such thing as good copyright protection schemes. DRMs, in the absence of the DMCA, would essentially become illegal.
But certainly, I do think there can be a non-intrusive copyright protection, and Mass Effect is a step in the right direction. It's not quite there yet, but I think it will be less to complain about rather than SecuROM or Starforce.
I also believe you in when you say sales will decline, unless something is done about these draconian copyright protection systems and inferior product quality.