Given the vast number of devices on Amazon that strip HDCP, and the fact that the master key was leaked many years ago, I doubt anyone that could act on this "illegal" activity cares anymore.
De jure it does not. De facto, well... at the point where you're selling gizmos on Amazon and nothing's happening to the sellers or the purchasers, it probably doesn't matter.
If used as intended will it allow an HDCP source to show on a non-HDCP display? Because stupid AppleTV won't allow "protected" content to display on mt main TV because it doesn't support HDCP, and if you buy something on iTunes you don't find out until you've already purchased it. DRM is driving me away from services like that and I'd rather just stop using them than buy another TV.
You're probably better off buying an HDMI-in/out device like [1]. It's a "splitter", but you can just plug the HDMI-in in one side and one HDMI-out in the other, and since it doesn't enforce HDCP on the output, it works as a stripper.
That is awesome, and would be something I would try and do right now, if I hadn't got rid of my cable subscription in favour of over-the-air Freeview (I'm in the UK).