Ah, but would your criminalize this? That's the problem. Your garage is probably a crime according to the EPA. Leftover pesticides, old motor old (heavy metals in that, too), etc. So you'd have no problem if someone dimed you out to the EPA, right? It's the law, after all. And what is more precious than our environment?
Laws against cracking lame encryption are even more insideous. Cracks can be e-mailed, or even verbally communicated. Should those thoughts and communications become crimes? Even truly evil thoughts, like stories about paedophilia, do not constitute a crime until real children are used to create pornography.
It's not that people here are sympathetic to pirates. We just value the security of our documents and effects over the the possible unpunished theft of a TV broadcast, especially when the vendor has the option to secure his product at little or no extra cost.
Hey, I know I violate a number of laws, probably every day. I even cut the "do not remove" tags off my pillows. In paractice, most copyright laws are enforced against people who sell content without authorization.
DSS leases smart cards. Periodically they reprogram or replace them. To the best of my knowledge they have never criminally prosecuted anyone who was not selling counterfeit cards.
You make a big deal about the quality of encryption. This is a bogus argument. If your door is locked, the law does not require you to have a state-of-the-art lock. Any old lock provides you with the benefit of law.
There is an interesting side note to all this discussion. Your TV also broadcasts. This fact has been used by cable companies to locate people using unauthorized cable services. In fact, every electrical appliance you use broadcasts a signal that could be detected. Particularly computers. It is probably possible to pick up your unencrypted computer video being broadcast by your monitor.
At some point, society draws the line and says this is private. Infrared cameras can see through clothing (hey, you are broadcasting infrared, so why can't I film you or your children and email the photos to a few thousand of my friends?)
The answer to all this is that civilized people do not steal and do not peep. OK, they do, but it isn't moral or ethical, and when caught, there are consequences.