[XJarhead]

The signal output from the converter box could contain copy protection data similar to that now used on commercial DVD's and videotapes. You could watch, but not record.

This is how home built PVRs are able to use digital services now....

What percentage of consumers have home built PVR's? Yes, a techno-geek will be able to figure a way around this. But the vast majority won't, just as they haven't figured out how to record a copy protected DVD or VCR tape.