I am agreeing to a rental agreement that outlines the terms. "Length of time*, extremely fees, and the cost of renting.

So you don't see the difference between a specifically defined length of time/conditions on when it will be returned vs "We'll take the car back at any time without warning while outwardly presenting it as you purchasing the car outright."

What I am confused about is how it is fine to steal digital media but not physical items.

Because again you don't understand simple language and think JAQing off is a more appropriate way to get answers than doing a simple search on your own.

https://en.m.wikipedia.org/wiki/Piracy_is_theft

Courts have distinguished between copyright infringement and theft.

Lawmakers and people smarter than you have already established there is a difference between piracy and stealing. Your insistence on calling them the same thing is as intelligent as saying "Why can I shoot people in digital media, but when I shoot people from my car it's illegal? What's the difference?"