The game that pops into my head that did it right was Timesplitters 2. As you advanced through the difficulty levels, there are more and more objectives for you to complete, it gave the game some depth that gave the player a true challenge that is much more engaging then just making enemies hit harder.

"Sony BMG also agreed not to distribute any compact discs loaded with any copy-protection software that hinders computer users from easily locating it or removing it from their computers." So that means it'll still be there, just out in the open to let consumers get at it, which will be hidden by some other measure that will continue to piss off the consumer.