Swapping CDs: Illegal or Common Sense?

I was talking music with a co-worker earlier this week, and during our conversation I mentioned that I sometimes go to the local library, check out CDs and download the songs I like to my iPod.  I thought nothing of it, and only mentioned it because he was telling me he was trying to decide whether or not he should buy an entire CD based on the snippets iTunes allows users to hear.  Really, I thought I was giving him a tip.  

Instead, he told me that he feels uncomfortable even letting his friends borrow his CDs just so they can burn them or download them to an MP3 player.  Now, I've always been known as a follow-the-rules type of person.  The last time I was at the hospital, I asked the discharge nurse where I should take my $150 co-pay.  But not letting my friends borrow my CDs?  Even I'm not that much of a downer.

To be fair, this guys really loves music.  And maybe rules, I'm not sure.  His intentions are good--he feels that the activity of file sharing is ripping off artists.  But haven't we (and by "we" I mean society) been file sharing for years?  Books, movies and music are all available for checkout at your local library.

So what do you think?  Am I taking advantage of my library by downloading music from their CDs to my iPod?  If so, should I also stop checking out books?  Because those artists aren't seeing a penny from me either.  

Hmm.  How technology changes the world.    

I'm really interested to see what Jimmer thinks about this one.