"you can record digital program sources onto a recordable CD disc to create a first generation digital copy. You cannot, however record from this recorded CD disc to another recordable CD disc."Exactly. That language basically goes back to the copyright laws allowing a single archival copy for one's personal use.
It has never been legal to make more than one copy of any copyrighted recorded material, even though people have been doing it for decades. It wasn't until the advent of the CD, and the ensuing recordable CDs that record companies and distributors really started cracking down. In the days of cassette and reel to reel tape, the record companies weren't as concerned because they knew the best quality recording was always going to be an original pressing or tape recording, and any copies...and copies of copies were going to get progressively worse in quality each time a next generation copy was made. Of course, with CDRs, this isn't the case.