So what's the issue? If you don't like DRM, then don't play protected content on your PC. Pretty simple. If you are quite happy with standard definition DVDs, nothing has changed for you, except that Vista Ultimate includes a DVD codec. If you want HD content, then you're subject to whatever protection the publisher demands for their product.
It's not going to matter whether I play DVD's on my Window Home Entertainment Center or not. Vista's DRm will be constantly scanning for copyright protected content, or for whatever it deems to be such and insereing monkey wrenches into the works. The whole scheme negates the very concept of a 'personal computer'. And the reason I'm migrating to Macs. I'll keep one of my 4 Win boxes and give the rest away.
http://www.freerepublic.com/focus/f-news/1757910/posts