Earlier quoted context omitted.
I'll second Silhouette's comments that the desirable world you'd like to live in was never an option. The problem is simple: the major copyright owners insist on DRM and the inconvenience has not been enough to get many people to stop buying all but the most encumbered content. Sure, the usability was worse. That didn't stop many people from doing whatever they needed to play the video — it just trained a generation…
That traditional DRM was inconvenient and prone to user error is the entire point. It's supposed to be unpleasant. That somehow making it more convenient and adding a standards-endorsed API to facilitate its activation will somehow assist in combating it, is a nonsensical proposition. Furthermore, there is a separation of concerns aspect here. Why are web standards writers under any obligation to serve the interests…
That is nonsensical but if you were to read my comment, you'll note it's not a proposition I made.
This really isn't hard: 1. Consumers are happily paying for DRMed content 2. The big media companies are not willing to consider releasing content without DRM 3. Nobody likes maintaining plugins or the lower video quality they entail 4. Apple, Google and Microsoft made it clear that they were going to solve #3 by implementing whatever Netflix, YouTube, Hulu, etc. need to 5. The W3C and Mozilla accepted #4 and used what power they do have to push the process into a public forum. Mozilla has been particularly active to increase user awareness and make it more obvious when your actions are being restricted at a content owner's bequest.
There was no step where someone waves a magic wand and Hollywood stops demanding DRM.
With or without a W3C spec, most desktop users and nearly all mobile users were going to have a browser with DRM playback features. That means there's no step where Mozilla makes EME content harder to use and the reaction is something better than users dropping Firefox for Chrome/IE/Safari.
Again, if you care about this issue the question to focus on is how changing #1. As long as people keep paying for DRMed content, none of the other parties will have the incentive or ability to change.