The 'Reasonable Use' (i.e. 'personal use/backup') clause was overruled by the 2015 High Court decision, Raed. So it's illegal - period.

But making a 'personal use' copy is harmless, IMHO, and I do precisely that for the CDs I carry around in the car - the copy goes in the car, the original stays safely at home. However I don't, and won't, copy CDs and pass them on - that's theft.

The usual disclaimers apply......IMHO, YMMV etc.