OK, I'm the person who wrote the review on O'Reillynet. Yes, it's true. Vector Linux is not compliant with the Digital Millenium Copyright Act (DMCA). To make it compliant you need to remove two packages: libdvdcss and win32codecs. Oh, and yes, that will break a whole bunch of multimedia capability. There are fully licensed DVD players you can *BUY* for Linux if you really want to comply with the law in the U.S.
I think it's pretty well known that I plan to move to Israel once I meet certain personal and financial goals (fully debt free, substantial savings). I think I'm about two to three years from meeting those goals. My reasons are simple: a lot of my family lives there already, I can get by in the native language, most people do speak English and there is English language media if I want or need it, and I already hold citizenship. It's a very modern, very developed, and absolutely wonderful country to live in. I'd like to believe that it will eventually even manage to make peace with its neighbors despite all the obstacles. I was in college when the peace treaty with Egypt was signed and nobody believed that day would ever come either.
Israel has no equivalent of the DMCA despite U.S. pressure to enact such a law.