There is no exception for duplicating copyright material for your own personal use. However, the industry has stated it has no objection and will not prosecute such infringement. It is also absolutely illegal to rip your CDs and sell or give away the originals to another. You own one copy, not two or more.
Additionally, the Digital Millennium Copyright Act criminalizes the production of technology which defeats DRM.
Mostly true but you’re ignoring the Fair Use Doctrine and overstating the generosity of “the industry”. Copying for personal, noncommercial use is generally legally permissible (apart from the DMCA, which only applies to copy-protected material, including SACD discs). The recording industry won’t sue people who make backup copies or rip their CDs for their own personal use because they would very likely lose. We beat this issue to death some time ago at http://www.psaudio.com/forum/general-discussions-and-miscellaneous-ramblings/digital-copying/page-2/