I think that M$'s anti-piracy tools is going way to far. Digital ID's are very good when buy online (they are bringing stuff like this out in Finland [Don't know about the US]) where by using your electronic ID you can prove to the website that you really are whom you say you are.
There is not point in spending millions of dollars on creating complex algorithms to stop pirating because the 5% of the worlds population whom are capable of pirating will always sucsed.