The benefits of uploading outweigh the possible detriment.
The NetMD devices would be infinitely more useful if files could be transferred both ways. What Sony is doing is issuing a challenge to hackers who will gladly accept and defeat the system somehow, sometime.
As we saw with DVD in Australia, hacked DVDs able to play region 1 discs finally became the norm when the numbers of people beating the "system" was too much to ignore.
If sony was worried about copyright infringement, they should not have entered the party with netMD.
Oh, by the way, don't believe all the crap coming from the "Copyright Club" of Sony, BMG et al. Corporate dinosaurs will realise that the consumer is well ahead of them on all counts and they better catch up or miss out altogether. They will tell you about the "artist's loss" but they are really talking about their fatcat, greasy executives who are trying to protect "shareholder interest".
Scaremongering doesn't need fact, only a semblance of it. If you look closely enough, you'll only see a few facts, only true in parts.
I bought the MZ-N1 and am pretty happy with it so Sony's got my cash. Let's see it used at its full potential.
Looking forward to seeing the hacker's breakthrough!