Re #4: I know what you say about potential damage, but I wonder how hard it is to actually scratch a CD to the point that it doesn't work. I once carried around my Mechwarrior 3 CD in a backback hoping it would get scratched beyond use so that I would stop playing (Long story). It never did. Also, my 5-year old son and I have been handling our Warcraft and Frozen Throne CDs for years now, and they still work just fine. And trust me, he ain't gentle with it.
I lent a friend or so called friend a PS2 game. When I finally got it back I checked the bottom like anyone would. It was so scratched up it looked like someone dropped it on cement and then twisted it into the ground with their foot. It couldn't get past the intro video without locking up.
I made the guy pay for it of course. But sheesh, how careless and disrespectful do you have to be to get it that bad, especially knowing your borrowing it. I think he also lent it to a friend of his, but still. If you saw the disc (2 weeks old when he borrowed it) you'd be like "OMG"