HUGE DISCLAIMER: The following is my personal opinion, and in no way reflects the beliefs of my employer.
DRM is a misnomer. There are no "rights" to manage. There are vendor-applied "policies" to manage. ...and this is where things get broken. Come on DRM vendors; come on media companies - have the balls to say, "DRM's are good for us, and may be only slightly intolerable for you." I want a DRM system that gives me the same "rights" for bits-based content as I have for atom-based content. Unfortunately, I don't see anyone focusing on that right now. Scoble's post was quite enlightening - it sounded like the Windows Media folks gave him a good serving of their kool-aid. Cory's post is interesting - thanks for bringing up the VCR issue, since the similarities are spot on. Dear Hollywood, etc - please admit that the video rental thing has been good for you.
In the good ol' days, I could buy a cd, open it in the parking lot, and play it on my car's cd player. When I got home, I could play it in my home stereo. Then I could take it into my office, and play it on my computer. Then I could take . OK, that was for stuff like Peter Gabriel's So cd. For crap, I'd sneak into some random MSFT building and play Watch the Sparks Fly with the cd and a microwave.
Hey marketers - I only use one, maybe two devices. Plus, with the MP3 format approaching ubiquity, no other format can compete on sheer numbers of devices supported. And when I think "selection" I want two things - lots of codecs supported, and the ability to flash new codecs onto the device at my discretion. I want ease of use. When I'm in the car, broadcasting from a device through my car stereo is fine - as a drummer, my ears are shot anyway. I also look for the ability to get content on and off that device quickly.
Long ago, in a galaxy far, far away, I got to sell IBM PS/2's. They had a far superior bus architecture called Microchannel. Just like a mainframe - technically far superior to the existing ISA bus. And it failed miserably. Lock-in strategies just don't work - consumers aren't that stupid anymore.
As for the "Use WMA, cause it's smaller", what a laugh. I rip to Shorten first, and then when I need to, resample to 256K MP3. I have multiple 120GB drives on my computer. My Nomad Zen has a 40GB drive. Space is not a primary concern of mine.
Bottom line - I use the MP3 format, because it most closely supports my listening habits. If the WindowsMedia folks want me to move to WMA/WMV, please focus on my listening/viewing habits, rather than focusing on the habits the media moguls.