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Or when the account gets compromised. I recently lost my amazon account and with it, all of my kindle purchases. Fortunately, I was able to turn on the airplane mode on my kindle just in time and preserve the books which were already downloaded. Guess I have to jail break it some day.
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I understand where you are going with this, but it also feels incorrect to me to blame people innocently "buying" media from a $corporation.

What are people to do if they want to stay on the non-pirate/legal side of this but also prevent being royally F-ed?

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There's no overlap. Just pirate.
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I suppose you could "buy" and also get a copy off of thepiratebay.org - you already paid for the license. It is teeechnically illegal because the "purchase" agreement very likely doesn't allow backups, but come on. (Also, the uploading part of torrenting is usually separately illegal)
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You can just not watch a movie. No one needs movies.
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Nobody said otherwise.
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