They've done it to a point. At least they let people copy music onto cds and then are able to listen to them on ipods. Can't listen to certain songs on Spotify due to DRM. At least Apple isn't such a pain about that. Understand and respect artist's rights, but something's gotta give there.
I'm not a huge fan of itunes, but I'll give them that much. It isn't as much of a hassle as it is on some other music applications. Second best, imo, is Windows Music Player.