Can't say that I particularly care. My only objection to copy-protection is that, if it doesn't actually work (which is almost always the case), then it's just getting in the way of the mature, respectable users.
If they can find a way to make it work, it won't bother me a bit. This is probably a step in the right direction although I'm sure it will be cracked as well. Besides, I'd rather have my games just authenticate over the internet than have to go digging around for the disk.
Online authentication is probably the only real potential solution. Disk checks and dongles are too easily circumvented because crackers have unlimited access to them. Online activation lets them keep at least part of the equation to themselves and modify it as needed. They should eventually remove the online activation requirements a year down the road or so though.
I would rather see a system that, should it fail to connect to the server, gives you ten days after that point until a valid re-authentication is required. It's a little hard to tell from their explanation if this is how it works or whether it needs re-authenticating every ten calendar days.