Marketing vs. business/tech
This is all a marketing issue. I'm sure it was the marketing folks who said "We should do this! It'll be a great selling point!" without asking the tech folks. Because I can't believe one tech person wouldn't have said "Um, you do realize that if you make it, people will abuse it".
Heck, years ago when Google started giving away unlimited email, or 1 GB of email space, developers worked up tools and software to figure out how to make the email system work like a pseudo offline file storage area so they could store stuff off-line easily (and not just email themselves a file).
It's what geeks do. They like to see if they can get something to do what they want it to do. And they tend to be cheap. So if they can use something for free, it's perfect! And they tend to have way too much time on their hands, for who has the time to rip your entire DVD collection, let alone the time it takes to copy all those files off site.