to portray the networks as unreliable and costly
I wasn't sure to which networks this was referring.
removing all copy protection would require movies as we currently know them to cease to exist
"as we currently know them" is the key phrase here. No one in the current production chain has any right to keep their job at everyone else's expense, any more than blacksmiths and farriers did. Now, would movies, good and bad, still get made if copying was perfectly legal? Yes, although the field would no doubt be very different than what we currently know.
At first they had a backdoor, swearing three times would get you to a human quickly, but word got out and they disabled that feature.