Yep, could make itms match almost like a $25/year unlimited music service. Go find a bad recording of what you want then let it get 'matched' and you'd be legal and have a good copy.
Exactly - many of the other commentators don't seem to be getting this. This will be killer for people with tons of lossy, mediocre, napster era mp3s who have just not gotten around to upgrading to better quality stuff purely because of inertia.
It does lower the bar for people afraid of torrents. Think analog loophole, playing back a music video on Youtube and recording speaker output into a file.