Not going to argue about what legality means in this post! As I understand it, if you subscribe to Apple's cloud services, and if you transfer your own LPs to iTunes, then, if Apple recognises the equivalent CD, you will be able to stream it anywhere to a compatible device which you own. The download stream will be at most 256 kbps aac. I'm not sure if they plan to allow you to download as well as stream. If downloads are on offer this could be good for anyone who wants copies for their portable devices.
Apple's service is planned to be different from some of the others, which appear to offer similar facilities. Some of the others may actually upload your files, and store them, which would mean thousands of copies of the same music stored on servers.
Apple's proposed system relies on it making a match between your music and the music store in its database/storage system.
As mentioned, they will take money off you for doing this. Also, by ripping to clouds, it does make the commercial operations legal in some sense.