What I don't really understand is how this could be used to stop piracy. Sure, you could stop recording on a machine with Intel Management Engine, but wouldn't pirates simply use a computer without Intel Management Engine to rip media? Unless the media becomes impossible to consume without Intel Management Engine (sounds unlikely, how would you explain that to customers), how does it prevent anything?
More importantly, why would software be required to engage in all activity by piping through such a hardware interface. I would expect that open source alternatives and virtualization could easily bypass its necessity. At first glance, dumping the contents of any source media, or capturing network streams properly, should readily provide the raw, unencrypted content data, which is then decoded by an application that…
Once this crap becomes ubiquitous, why would companies ship unencrypted bits at all? They could send files encrypted with all the major OEM "protected content" keys. If you're running on non-supported hardware, well, sucks to be you, pirate. I imagine it's rather difficult to extract the private key from DRM hardware.
In the end, big media wins.