You've hit on the core of my response to this article. Gates better stretch out his timeline if he wants this DVD-destroying technology to be cheap enough for the average slum lord, single mom, college student, etc.
Yes, DVD's and CD's can get scratched, but if you take care of them, they don't.
I like my DVD's and CD's. Am always willing to try a new technology but even though I have CD players and a DVD player, I still have cassette players, and use them.
Along with DVDs and CDs, I still have cassettes, Beta movies and a Beta player (!), and...LP record albums! :) Other than getting rid of Beta movies as I upgrade them to DVD - as good as the Beta picture was, DVD is better -- I am keeping all of my "old media." Some of my records have been duplicated on CD, allowing for "portable" play, yet I still like to listen to the LPs, right down to the familiar spot where the needle skips in MY FAIR LADY.
I think one thing that Gates misses is that people like to *own* things and touch them. Part of the thrill of the DVD format is all those neat little boxes lined up on the shelves (so much prettier than video boxes!). Being able to access a movie from some nebulous "great beyond" doesn't work for me by comparison...