That's only because currently the studios haven't enabled the flag that requires HDCP. They know most consumers don't have HDCP hardware yet. At this time, HDCP is not required to view high def and it won't be until the studios start flipping the flag to on.
If AnyDVD actually released a product that removed AACS commercially, it would be a felony violation of the DMCA (Digital Milennium Copyright Act) as a circumvention of copyright and they could be incarcerated for it as well as the product would be removed. And believe me, the RIAA/MPAA wouldn't hesitate to go after them.
All that that program does is decrypt HD-DVD on the fly the way any other legal HD-DVD player does, using the keys provided to it under license. In the event that AnyDVD actually chose to provide high def content that did have the HDCP flag set to on over a non-HDCP connection, it's AACS keys would be revoked and it would no longer be able to decrypt HD-DVD's (and it would be in violation of the DMCA).