Regarding 1, I really don't believe you can run code without copies, or copies of a derivitave work, being made in the process.

That said, I can't read a book without reflections in my eyes...

I could run it directly out of a ramdisk, or maybe transfer it to an embedded processor that can run it directly off the flash chip without even a processor cache. There's a whole variety of ridiculous things I could do to avoid the ridiculous restriction.

In practice I would trust fair use and try to use such as a defense if sued.

> I could run it directly out of a ramdisk

Hard to do when you were shipped a DVD.