On one side, valve's DRM is far less intrusive than EA's and on the other side valves efforts to curb piracy involves a lot more than just slapping DRM on. I remember a large post (interview?) where the gist was:

* Treat all markets equal and release the game at the same time. Not having access to a game that's released elsewhere is a huge driver of piracy. * Support your games, release follow-up content. * Actually make the DRM-Service a service: I can buy a game on steam and if there is a mac/windows/linux version, I can actually play all three of them.

It's all give and take. It's annoying that Steam games are DRM protected, but OTOH, I get added benefits. Just taking functionality from the user won't get you far.

People often buy slightly defective products when they're competitive in other features - that doesn't change the fact that any game would be a higher quality, more desireable product if the DRM was removed.

The "defective by design" refers to features unwanted by customer, but intentionally designed by manufacturer.

Examples in the physical world are specific short-lived parts in consumer appliances to reduce their longevity and increase sales - as it's better for manufacturer if a washing machine lasts 5 years but not 10; or new printers being sold with half-full cartridges to facilitate sales of replacements. Quite useful to the producer, but nonetheless despiceable.