Having a unique perspective from a network/system security point of view, I can only offer my opinion and hope someone finds it informative, useless, or at least humorous.
Security:
Security comes in two froms, REAL security, and perceived security.
75% of all security in corporations of any size, is perceived, and not real. From my travels, I've observed that most companies operate with a lawyer (Actually this is a team of people, consisting of risk analysis, loss prevention, etc.. mostly a play on paper from what I can see) on one shoulder, and a Marketing spin doctor on the other. The "lawyers" often given advice that is completely devoid of technical insight and some times give advice and recommendations to companies who PAY THEM to do this, that is neither accurate or some times not even possible to carry out. Thus, begins the long strain of memo's and email, text messages and phone calls until some firm who's whole purpose is to prey on this, takes up a RFI to create a new security bit to protect software, music, video, etc.
Having known people who work for these firms as programmers, they'll tell you that this is almost all moot, and is for appearances only, since they KNOW it is beatable.
Its all done to make people feel warm and fuzzy. So, it is my opinion game manufacturers put this in under the advice of some team of lawyers (as defined above) thinking they have made the right decision and that the risk analysis provided will in fact impact their bottom line, but only by not incurring a potential liability (Er, accountants have a word for it, I forget such hooplah as it is unimportant to me)
Thus numbers look good and they give the order.
Sounds stupid right? It is.
The TRUTH is, DRM does nothing (At least towards its actual intention). Any person who speaks english as a native language will run circles around the poor off shore phone monkey, and weasel fairly effortlessly more activations at no end.
DRM in general is quite useless on most mediums, thus my only conclusion is that it's corporate ape dung at is most retarded.
Frankly for me, all it does is cause hassle, as to play games typically requires the CD to be in the drive. I personally dont really care, since I have a computer designed for gaming I dub a "super-console" since it does that one thing and that one thing only. (Thus it tends NOT to break nor require OS reinstalls, however I am the exception rather than the rule)
Any one remember when Sony made an "un-copyable" cd? Millions of dollars of research, destroyed by a kid with a 50 cent magic marker. (Too bad you cant fire a dude more than once uh Sony?)
As you can see, brilliance abounds.
KICKER: With Microsoft's brilliance that is Vista, and the poor Q&A of the typical home line of machine available from most OEM's, this DRM waste of time is likely to bite more and more people in the ass. So eventually, it will become more trouble for companies to use DRM than it is worth. (The music industry is JUST NOW getting this clue, as it is impossible to stop copying of audio)
However, until that day comes, we'll all just have to deal with it, in whatever way we currently do.
Arg, </Ramble>