Yes, piracy of DVDs and movies in general is illegal.
Now, it is NOT illegal to make a backup copy of a movie THAT YOU ALREADY OWN, and for you own use. Just don't make more than one copy of each individual DVD. Also, don't give it away to family, friends, or sell it.
Piracy, or bootleg movies, DID NOT cause the recession. Risky home loans, and bad investments made in the stock market, were the main contributors of the recent recession.
I doubt your relatives went to Afghanistan and bought the bootleg DVDs. They probably bought it from that American citizen in his 20's who bought a copy of a movie from Walmart and then made a copy of it on his laptop. He then goes from barber shop to barber shop trying to sell his bootleg DVDs to people getting haircuts and keeping the money for himself. I have seen that happen alot. (well, every time I go get a haircut)
So, I say, how does a guy in Chicago selling bootleg DVDs that he made at home and selling it on the street help support terrorism? That money went into his own pocket. I would understand if that guy was from Afghanistan and he was sending all the money he made from selling bootleg DVDs back home as supporting terrorism.
Also, I wouldn't cry for the movie makers to much. Have you seen some of the crap that has been coming out of Hollywood? LOL.
I am not supporting piracy or bootlegging DVDs. Just trying to state some facts and common sense. In fact, the next time you see someone setting up a bootleg DVD for sale stand, call the police and report the crime.