Now how can we apply this to software. Well some precautions can be taken but they generally aren't very effective. It only takes one person out of billions to figure it out and share it. So you have to weigh the costs of implementing copy restrictions which includes the man-hours to develop that code and the inconvenience to paying customers. The shrinkage rate needs to be taken into consideration. Software shrinkage would be unsustainable if you actually lost product every time but you don't. There is opportunity costs but no costs associated with replacing the product.
I have three or four apps on my Android devices which implement DRM features. Some of them are 'phone home' features. Some of them are 'buy a crypto key to activate this app instance' features. You know what? That's fine. I like these apps enough that I'll pay for them. I also like Android's "broken" model enough that I'll stick with Android; Android's "broken" model let me root my phone, clean the ROM's crap out and integrate the Dalvik cache. I can't hope to explain how much this has improved the phone's performance for me.
Given the choice between something like Android and a feature phone, I'd probably go back to a feature phone. Thankfully, Google opened the barn door, and even if Android stops being produced, alternatives like Cyanogenmod and WebOS will take its place. Given the rate hardware's getting commoditized, we're not that far off from someone like BeagleBoards coming out with devices with CDMA, WiMax and GSM modems.