My question is basically, "That basic procedure can always be performed and there's nothing that can be done to prevent it, right?" Isn't the distinction between "streaming" and "downloading" ultimately just about how the video data is delivered? The server is incapable of ensuring that the client doesn't save it to permanent storage, and a "cooperative" client can always be modified by the person who controls it to save the data, assuming it's physically connected to a storage medium.
Am I missing something fundamental that allows there to be a hard distinction between streaming and downloading?
NB: I don't have any moral qualms with providing streaming video, I just think that the business folks wish that there were a technical distinction that, AFAICT, does not exist.