I'm confused. Unless the article is wrong, "It's also illegal to break the DRM that restricts copying of DVDs" seems to state that he did break a law.

It makes quite a bit of sense to do a stunt like this, although I certainly would not be willing to be the person to risk it. The way most of the anti-piracy outfits work is to make vague claims about the legality of various actions, and demand a settlement. Sure, its cheaper to do that for both parties, but if they're just waving about a threat that has never been upheld (or not upheld) in court, it creates problems.