How is getting something you already own illegal?
If you lose your Peaches and Herb's Greatest Hit's CD, you are not entitled to a brand new copy for free if you lose it. Lost it? Buy a new one. You aren't buying the content outright, you're buying a piece of plastic that carries the content. Lose the plastic, lose the music. You aren't allowed to make copies for people and you aren't allowed to steal another CD (which is what copying is).
Once people get off this whole "mine! mine! mine! free! free! free!" kick, the logic is clear.
To get a free disk from Commodore back then, you still had to prove you were an owner of an A1000, which is what you did when you sent in your registeration card.