I imagine people at EA talking this over and being like "Wait, what do you mean this isn't working? How can people be angry over this?" "Forget that, what do you mean it's LITERALLY not working and the piracy is WORSE then with everything else?! That's impossible!"
Really, a major part of the problem in this entire issue boils down to two things:
1) The inability of people, especially businessmen, to change and adapt*
2) The inability of people to admit they're wrong about something and, as a consequence, just keep pushing and pushing their original concept to the detriment of all.
* Seriously, businessmen are like 500 year old vampires in a White Wolf RP who need to go outside for once, and then their ghoul has to spend ten hours convincing them that yes, they need to wear jeans and a T-Shirt to blend in because the frumpy frilled french shirt they still own from being alive is out of fashion.
NOT THE BEES! NOT THE BEES THEY'RE IN MY EYES