Cute, but mistitled. I've always understood "rip" to mean "copy CD to MP3". For most routes through this flowchart, the title should really be "should I steal this?"
And it seems way too complex to me. I mean really, how ethically ambigous is the question "do I own it"? As I see it, if I've bought it -- in any form -- it's mine and I'm ethically free to copy it to any other form for my own use. If not, it's not mine and I can't copy it. (Exceptions: where permission to copy is given; where the work is in public domain.)
Finally, I'm sick of the "rich megastars won't miss the income" and "expoitative record companies deserve it" posturing. Didn't we all learn "two wrongs don't make a right" as kids?