I have a laptop with a broken network card. I occasionally use it to write or play FM when I go on long-ish train journeys. Now that's a tiny minority of my FM time, but it will still annoy me next time I go on a long journey and cannot play my latest save. For other people, it will stop them playing FM all together. These are people who cannot pirate FM. To be honest, I think they're fine about SI having to employ fewer coders, as long as they actually get to play the game!
2) Again, I agree. UK Copyright Law is totally outdated. It is silly that combining your digital music collection with your partner's, or going halves on FM with your brother, is illegal. Fortunately, I think copyright law is being updated in the next year or so to make it better fit in the digital world.
3) Legally, I don't think you can give it away, but it is technically doable.