So why doesn't Microsoft make their case to the general public? They do a really poor job of that. It should not be Microsoft's problem to enforce DRM, but they should at least explain their position to their customers.
Because fighting against a barrage of FUD - largely uninformed FUD - is difficult. I don't know that it's a big enough issue yet for them to address it because as far as I know Vista is the only operating system capable of even supporting Blu-Ray or HD-DVD playback. There are likely very few people who are attempting to use their PCs as such players.
in order to view HD Content you must have HD compliant hardware, "HDCP" High Definition Copy Protection, this is the same no matter if you want to view it on a stand alone TV or if want to view it on a Computer. Regular DVD's DO NOT have this.
Because Microsoft isn't an unwilling victim in this. The simple fact that a portion of every Zune purchase goes directly to the record labels shows that Microsoft is a willing accomplice. No other digital music player manufacturer pays that tribute.