Earlier quoted context omitted.
All of the crypto in the world is worthless for a DRM system if a user can easily circumvent the system by replacing one of the components between the black-box DRM module and the hardware in order to get a perfect digital copy of the "protected" stream. This is why "content protection" systems, like the one introduced in Windows Vista, tend to be so over-reaching; they want to create a leak-proof pipe between the "p…
That's a last mile problem the industry doesn't need to solve. How many people would rather hack hardware than pay money to watch TV and play video games? Of course, if it becomes cost-effective to hardware encrypt the entire stream, I don't think the lack of a W3C standard will make any difference in stopping it.
It only takes one. Everyone else just uses that cracked copy.
I'm not worried about DRM working, I'm worried about it not working in a way that gets in my way as someone whose time is generally worth more than the hassle of finding movies on bittorrent.