Carl, Go to www.dictionary.com and look up theft. Or look back a page or two where I have printed the definition. Walking into Tower Records and shoplifting a CD is stealing because you are removing something from the posssession of Tower. But downloading an MP3, just like taping a song off...
Steve, As far as I know, Music CD-Rs, DATs, and regular audio cassettes have royalties built into the purchase price. As always, please correct me if I'm wrong on this.
Jeff, You're right, I misread your statement, even after quoting it. But the statement "Unlawfully {insert arbitrary activity here} is never legal" is redundant. Here's some additional info relative to what has been discussed above, from EFF with my emphasis: