I think Matt Haughey hits the nail on the head with his op-ed on inevitable customer reactions to the impending Broadcast Flag. This isn't too different from the insight Umair gave on the ultimate effect of the MPAA night-goggle guerilla tactic.
If you can't (legally) modify what's new to do what old technology already can, there are some serious issues to iron out. There will always be a 3rd-party market that figures out how to circumvent the copying. It's precisely why encrypting video cables is pointless - the weakest link must exist to be useful.