Do you really have a Do Not Duplicate Key?

Ok, scary stuff but true;

Fry's Electronics and Lowe's now have self service key duplicating machines.

We sent our daugther to a Lowe's with a Do Not Duplicate key to see what would happen and the young man told her he would help her put it through the machine if she brought it back with a key cover that hides the DND words.
INCREDBILE!
This ia another reason to invest in Medeco High Security Locks, because these places do not have access to these key blanks.
Also, even if you have a regular key, these places use cheap key blanks and if you have a worn key there is no one there to tell you that your duplicate may not work because of this.
Last, all locksmiths are required to have a "key duplicating" permit. Please help us understand why this should be required when there are machines like these?
How do you feel about all of this? Comments appreciated