This is about the simple acting of copying the disc to your computer though, nothing to do with sharing it with other people.
I agree with you that someone who fileshares copyrighted stuff is breaking the law, and to convince themselves otherwise is folly. But simply the act of putting your own album onto a IPod to listen to, or making a copy to your computer in case the original gets scratched, is not sharing, it's, for the Ipod, simply converting the album to a listenable format, and, for the backup, simply taking a sensible precaution with a delicate media-type.