If we want to adhere to stricted morality, which is how these issues should be discussed regardless of what we personally do, here is my take:
Well lets be honest. Who actually makes backups of their movies that are on dvd's? I would say the percentage is mightly small. Most people who say they are making backups are really saying i want to copy dvd's that i dont own. Should that be illegal ? Absolutely ... its copyrighted material and there you have no right to make a copy of it.
I think a ruling as broad measure is inappropriate, as there is nothing illegal in my eyes about making backups. it would be illegal if you would lend out that backup while you retained the current one in your household. I just do not think thats appropriate.
As for comparing it to vcr's that is completely different. VCR's were created to tape tv for later watching. To use them for renting a tape and then copying it was illegal back then as well. So this whole copying issue has been around for a long while. Hey even copy music tapes was considered illegal.
The internet with its endless amount of bandwidth has just surged these issues into the forefront as it is easy to download a movie or download a whole album of music. The issues themselves are very old though.
So should it be legal to backup dvds that you own, and will never lend out, yes. Should it be legal to do anything else that revolves around copying them..no.
Just my opinion