dd is fooled, it finishes but just produces a small file and states it's finished.
dd_rescuse and ddrescue are complaining about read errors and are intolerably slow. These tools can copy only a few MB in 10 minutes.
Why is this happening, why are these tools failing?
AnyDVD makes the disc copyable in a second on a Win7 host. It says that the UDF filesystem is patched, curiously, it also says that there are no bad sectors. The whole disc can be copied in 10 minutes.
UPDATE: As for the solution, see my similar question on superuser.