The DX2 has its roots planted firmly in VHS to DVD conversion, where its weaknesses were less apparent when transferring lower resolution VHS tapes into DVDs. But aside from converting family videos into a handier DVD format, I'd venture to guess that making a copy of an inferior VHS movie collection is not high on anyone's list of things to do.
Fortunately the DX2 can be used for other video capture related tasks. Use it to make backup copies of your DVDs, archive content from your DVR or TiVo or even use it to record your skills with your latest video game (I can't imagine why you would want a DVD capture of yourself playing a video game, but the important thing is that it's possible). If it comes out an S-video or composite video port, the DX2 can record it.
But does the DX2 return our fair-use rights to us by allowing us to make a personal backup of our bought-and-paid-for DVDs? Sorta. If you seek a quick and legal backup copy of a video in your DVD collection, it's a good option, as long as you're willing to accept some loss of picture detail, are willing to fiddle with your set's colour settings during playback and don't mind the real-time capture process. You shouldn't plan to watch the DX2's copies on an HD large screen however, since that only amplifies the DX2's weaknesses.
But will it produce a DVD copy that rivals the quality of a digitally-ripped (and illegal) copy? ADS Tech's claims to the contrary, the answer is definitely no - unless you plan to watch that copy on a portable media player with a tiny screen that will nicely mask the DX2 copy's shortcomings. So for now, if you want perfect copies of your own DVDs, you still need to risk having the cops, or worse, the MPAA kicking down your door.