There's been a bit of a saga going on with Paul Thurrott and Microsoft over Windows 7. The short story goes something like this:
Anyway, the latest bit of this saga is there has been a bit of backpedaling and an apology from Microsoft, at least kinda. Paul's post goes over the high points from it.
End result is that most of the time, DRM and anti-piracy measures will affect more paying customers than it will pirates. Pirates have had a fully activated, WGA passing Windows 7 ISO since before the release date, and if you want pretty much any song by any band in lossless quality it's no more than a few clicks away, and pirates will pretty much never butt up against copy protected music, game ISO DRM, or Windows Genuine Advantage-esque protection. Sadly now that they've started using these, it'll be really hard to pull them out and save face, so now it's just another software arms race of corporations vs crackers.