"Once the DRM hardware comes out this won’t be a huge issue because people must upgrade their PC to play better games"
Holy shit this is when the shit is really gonna hit the fan. The minute the companies try to pull this shit on us is the minute that gnu/linux will be on all computers in every dorm across america. Bill Gates will travel back in time and record the sample for Quake 3 Team Arena "HOLY SHIT" because he realizes what a mistake hes made. I cant wait for this moment.
I see the internet right now as the wild west, with a crapload of bandits and not very many sheriffs. People commit crimes and act like jerks cuz... hey, it's the wild west. There aren't any sheriffs around, and everyone does it. Eventually, perhaps after a long while, the internet will become like the real world. Civilized. Sure people will still steal, but they will be in the minority and be ostracized for their actions. Common morality will tell us that these actions are wrong.
Right now, the sheriffs are just beginning to move in and impose a bit of law and order. Things like DRM hardware seem unbelievable now, because we are still in the "wild west" phase. No one in the wild west would stand for a law that prohibited consealed weapons or fist fights, but as the environment becomes civilized these restrictions will feel natural.
The same goes for other illegal internet activity (worms, hacking, etc). Eventually, these actions will seem just as wrong as assault or vandalism.