I think the copy protection feature is a toggle, allowing unlimited copying of designated files.
As for the DataPlay CD, as you note, it has moving parts, higher power consumption than flash memory, and presumably needs some sort of antiskip mechanism similar to a full size CD player to allow the unit to be used while walking, bicycling, or driving. I can also see the Toshiba rationale. This is another market. No serious photographer would accept this cumbersome method of image storage, just because it happens to be cheaper than flash memory. Instead, there are other markets, such as music, which might be acceptable, where price of the media is probably an important factor in the consumer decision to buy.
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