Depending on how they set it up, BitTorrent might not work at all.
Having to share an IP address with tons of people is absolutely, 100% a crippling experience. There are plenty of sites (newspapers, the site I get textures from, RapidShare, etc.) who limit their services by IP address. There's nothing quite like seeing messages about how your IP has exceeded the download limit on a website you've never visited before. Also: having to deal with bans when playing online games, as many are IP-based. The impossibility of hosting your own servers for games or other purposes. BitTorrent is nigh unusable. I would not pay a dime for this kind of a service, ever again.
It's generally just 'enter a serial number' for off-the-shelf versions as well. Microsoft will run all the checks in the background, and as long as everything goes smoothly you won't notice a thing. The problem is, the system they use for validating serials is a convoluted mess that quite often fails at some point during activation. It can also revoke your activation if you swap out a bunch of hardware at once, to name just one example.
Max Payne 3 did exactly this, although I'm not sure they advertised the fact. Those caught cheating were forced onto a server with other people who were caught cheating.
This is unique insofar as they released their own cracked version, whereas I believe Earthbound and Serious Sam would detect modified launchers and activate their DRM. One of the Batman games (Arkham asylum, I think) did the same thing, it messed up your batarang so you couldn't complete certain parts. People posted about the issue, thinking it was a bug, on the official forums and then got publicly shamed by a moderator who exposed the fact the 'bug' was related to pirating the game. I don't like DRM but at least they're being creative! But with Game Dev Sim, you could argue it's not DRM.
One word: advertising. Right in front of your eyes is the most prime advertising space I can imaine.
That 'e' was unintentional, yet hilarious.
Imagine McAfee and Dotcome sitting in a hot tub together, discussing their wild techno fantasies. You're welcome.
I'm pretty sure he 'ran into legal issues' in regards to providing people with their old MU files. Pretty sure the actual website is happening either way.