Morality is internal, legality is external. My morality says that I won't copy a protected work and share it. I also won't store a rented movie on a HDD to watch later no matter what capabilites my software has.
That said, I also want to be legal. I have been doing some reading since your latest reply. It seems that DeCSS has been deemed illegal in the US but that uses a different system than libdvdcss. I found this quote on a website."However, the Synaptic Package Manager description (if you have the Medibuntu repositories enabled) for libdvdcss2 reads as follows:
Library for accessing DVDs like block device using deCSS if needed" http://ubuntucat.wordpress.com/2007/05/28/the-legality-or-illegality-of-w32codecs-and-libdvdcss2/
Although, I can't actually find that quote on Medibuntu's site so I don't know how accurate it is.
I also referenced this this article on wikepedia. http://en.wikipedia.org/wiki/Libdvdcss2
So I suppose that if there is no legal issue with libdvdcss, than I suppose it is all in how you use it.
Thanks for taking the time to answer my questions.