"The point is that hiding secrets in devices that belong to your adversaries is very bad security practice. No matter how good a bank safe is, the bank keeps it in its vault – not in the bank-robber's basement workshop.
For a hiding-secrets-in-your-adversaries'-device plan to work, the manufacturer has to make zero mistakes. The adversary – a competitor, a tinkerer, a grad student – only has to find one mistake and exploit it. This is a bedrock of security theory: attackers have an inescapable advantage.
So I think that DRM doesn't work. I think DRM is a legal construct, not a technical one. I think DRM is a kind of magic Saran Wrap that manufacturers can wrap around their products, and, in so doing, make it a literal jailable offense to use those products in otherwise legal ways that their shareholders don't like. As Jay Freeman put it, using DRM creates a new law called "Felony Contempt of Business Model." It's a law that has never been passed by any legislature, but is nevertheless enforceable.
In the 25 years I've been fighting anticircumvention laws, I've spoken to many government officials from all over the world about the opportunity that repealing their anticircumvention laws represents. After all, Apple makes $100b/year by gouging app makers for 30 cents on ever dollar. Allow your domestic tech sector to sell the tools to jailbreak iPhones and install third party app stores, and you can convert Apple's $100b/year to a $100m/year business for one of your own companies, and the other $999,900,000,000 will be returned to the world's iPhone owners as a consumer surplus."