These arguments make sense if you believe that "DRM" (software protection) has lost the technological war. But it hasn't! You just don't see the high-end stuff deployed in places where hackers care about it --- with the possible exception of the hypervisor-secured game consoles.
1. No doubt there are incredibly intelligent, motivated people working for Microsoft, but talent requires an appropriate environment to reach its potential. 2. The mistake is often made of assuming that the "good guys" are the only ones with smart people on their side. This mistake is most frequently seen in discussions of national security and nuclear technology. 3. All it takes to defeat a non-service-based DRM scheme is one vulnerability. If the Kinect has to continually stream motion data to Microsoft servers for processing (kind of like Android speech recognition), then Microsoft can keep changing the protocol and encryption. If Microsoft's 100 talented engineers leave just one gap, and one talented hacker finds it, then hackers "win." 4. "Might makes right" should absolutely apply to what talented hackers do with products they own. I value individual property rights above corporate business model preservation. It is the duty of the giant and powerful corporations to ensure their business models aren't vulnerable to the whims of talented hackers, and using the law to make it so is unethical.
Where is it, then? And if it's where I think it is, don't most such places keep tight control of their hardware? (As opposed to letting random consumers buy and own it.)
BD+ in particular, I thought some commercial program was already able to emulate. And I haven't heard of any movies where there are no pirated versions available, but I don't watch them at all, so I might be out of the loop.
And mere Blu-Ray (for those disks without BD+), is pretty well cracked at this point if one is to believe the hexadecimal numbers going around the internet.
They have access to talent of that caliber, but apparently ( http://en.wikipedia.org/wiki/Xbox_360_technical_problems ) they aren't willing to pay for it.