"This is the first concrete deployment of "trusted computing" type system, and the reality is that it is working"
OK, that may be true in a purely technical sense.
"The content industry has won this round"
Ummm, if by winning you mean "Blue Ray is a successful platform that has been widely adopted by a large number of paying customers" then you would be totally wrong. They may have won the battle, but the have not won the war.
", and will continue to win with ever more secure encryption and a legion of untrusting, internet connected players in peoples living rooms."
Only if they manage to force people to buy that stuff. or somehow manage to make stuff that does what you say and somehow manage to provide value for money and user satisfaction as well, which would be no mean feat I assure you.
P.S. Why is it that I now have to manually put in HTML break codes to insert blank lines between paragraphs now?