Don’t like how they’re doing it, you can literally spin up your own for dollars per month.

Not so easy.
Mostly a liability issue.
First there’s security - make sure the server doesn’t get compromised.
Then you need to figure out how to deal with illegal content like CSAM (was already a widespread issue on Lemmy at least once, causing multiple instances to shutdown) - even on private instance due to content caching.
And legal issues such as minimum age and privacy regulations that you’d have to comply with.

3rd one is not an issue if you only use it yourself, and perhaps with a couple of friends that won’t try to sue you when they get mad.

Line break, I’ll fix it.

There may be a limitation if the DVD is copy-protected, as is usually the case. There’s too much to read for a single comment in DMCA: https://www.congress.gov/105/plaws/publ304/PLAW-105publ304.pdf

But it does fall under this definition (§1201):

‘‘(a)(3) As used in this subsection—
‘‘(A) to ‘circumvent a technological measure’ means to descramble a scrambled work, to decrypt an encrypted work, or otherwise to avoid, bypass, remove, deactivate, or impair a technological measure, without the authority of the copyright owner;

and

‘‘(a) VIOLATIONS REGARDING CIRCUMVENTION OF TECHNOLOGICAL MEASURES.—(1)(A) No person shall circumvent a technological measure that effectively controls access to a work protected under this title.