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It still makes sense, if I understand it right: Apple utterly hates that anybody other than Apple themselves has any control over anything that happens in their iSomethings, and the DRM meant that the Crapp^HCopyright holders had some control over iTunes content.
The USA is clearly a republic (which means that leadership is not hereditary); it's also a federation (because that's the way it's organized), and it's also a democracy (which means that people has the power; in a representative democracy, said people hires politicians to manage the country for them).
In other words, if they are saying that the USA is not a democracy because it's a republic, they're objectively wrong on at least two levels.