DVD Audio also has DRM on it. One of the reason why it (and Super Audio CD) never took off was because of DRM. Personally, I think that the RIAA only hurt themselves more when they started installing DRM on regular CD’s. Each DRM method they tried was cracked right after release, and their efforts ended in disaster two years ago, when Sony sold DRM-laden CD’s that installed spyware on people’s computers. Since then, the major labels have abandoned putting DRM on CD’s.
I don’t think that is why those formats didn’t take off. Most people are simply not audiophiles who listen to very fine music in an expensive home theater system. They may want better graphics or tv resolution but they aren’t so interested in higher audio quality.