Yeah, that's insane, and probably the biggest reason that's it's so easy to have a "fuck you then" attitude to the music industry when it comes to choosing limewire versus iTunes versus high street.
Imagine if you bought a jacket that you were only allowed to wear at home, and if you wanted to go outside you had buy wear (and pay for) a second, identical jacket
I do understand the difference between buying an object and buying a licence, but how after all these years it can fail to be obvious to the industry that they have to work towards giving consumers the products/services they want if they expect to be paid for them is quite beyond me.