The spec for W3C can say whatever it wants. If the standards body makes a mistake, like blessing useless DRM where it doesn't belong, the rest of the web will kindly ignore the stupid standard. Seriously, IE isn't standards compliant, what would keep Mozilla, Safari, any of the other browsers from simply ignoring this?
How about the fact that being standards compliant is one of the main advantages that Mozilla, Safari, and other browsers currently have over IE? IE ignoring W3C standards has significantly weakened the usefulness of the standards. If other browsers are forced to also begin ignoring the standards due to BS like this being adopted then the existence of the standards will become pointless.