Remember DIVX? It was an alternative to DVD that included some pretty draconian copy protection schemes. It flopped in the marketplace because people stayed away in droves. Circuit City was a big proponent of DIVX, so much so that I wouldn't even set foot in their stores.

I personally think this will backfire big time. If a particular piece of software requires the internal copy protection chip, don't buy it. If they try to force including this ability in every PC, don't buy them. Vote with your feet and your dollars. I can use my existing computer and entertainment equipment for several more years if need be. How long will the industry survive if people refuse to buy their products?