If the next Xbox had no support for DVD discs, and games were on a proprietary write-once disc that you couldn't read, nor write to from a standard PC, it would seriously curtail piracy for that console.
Ever tried a Wii Disc in your drive? There's only about 3 models of DvD drive that will actually read them (They're all LGs I think), despite this piracy on the Wii is rampant as hacking it is trivially easy, most people rip the discs in the Wii itself. Making the discs unreadable on anything but the console doesn't really have any effect on piracy.
My personal favourite: "No repeating characters allowed." Super idea!
No. 1 reason a good few of the people in my work forget their passwords all the time, the ones that do 'remember' write it down and either:
a) Stick it under the monitor for all to see
b) Put it in the top drawer of their desk which is always unlocked.
Fucking superb security policy if you ask me.
The only person who always got his work done by Friday was Robinson Crusoe.