It seems like the whole problem is the recording industry is based on a model in which the average consumer does not have the means to reproduce music with good fidelity. Since that has changed with the convergence of CDs and PCs, the obvious solution is to introduce a new format that is incompatible with existing cd-rom and cd hardware.
If I were in the recording industry, I would work with the electronics industry to create a new recorded music standard and by patenting the technology, they could block any third party from building hardware that could allow ripping of the music to a computer.
Since there is no compeling reason for people to move to a new recorded music format, they could introduce the new disks and price them 3 dollars less as an incentive to move to the new format. And sell all new players with backward compatibility for the old disks. They could also allow trade-ins of old cds for the new format.
I'm not sure anyone would swallow this, but it seems like their second option if they can't get widespread adoption of a DRM system.