Yes, vaguely. That's a ways away from my area of practice. I think you're right. I think that some modifications to DVD players can be illegal, as you've described.
Kind of sounds antithetical to capitalism, if not the Constitution itself. The very act of paying money for a DVD player is an implicit agreement that you will use it in a certain way? Or opening the box?
But it's all preposterous IMO. Blockbuster declared bankruptcy, not because of DVD piracy, but because streaming is easier and cheaper, and those who don't use streaming found better deals.
There are better ways to fight media piracy than this.