From a more philosophical standpoint, I'm right there with you. But legally, copyright is a set of exclusive rights that one has over their content. The ability to allow or deny all sorts of handlings of said content. And fair use is simply a set of guidelines that hopefully maybe will allow you to squeak past someone else's rights, for the right (heh) reasons. Is it picking nits to break it down in such a way? Yes, but I think it's important as people tend to think that fair use is some really great and powerful protection they're offered, when in reality it seems a weak and fragile doctrine, and one that I never hope to have to stand up for myself. The way it should be? No... but, then, what is...
It will be interesting to see how these things continue to play out, as you mentioned YouTube and the like... Netflix uses Microsoft's VC-1 codec and PlayReady DRM. Breaking DRM is a whole 'nother legal challenge. But YouTube, and a lot of other content is sent 'in the clear,' so to speak, and cached (downloaded) on the user's machine anyway. Obviously recovering and saving these files violates a license, but... a lot of copyright related issues sure seem to be built from houses of cards these days...