how would it be a good thing for the industry if some hardware/software hacker decided to reporgram his tv or set top box so that he could get stuff for free or (more sad that we would have to think about doing this than anything) over ride watermarking which stops recording of events.

True, but what you fail to realize is that restricting people this way, only SPURS the hardware/software hackers... Just look at all the equipment that has been hacked, not to mention software. There needs to be another solution, and restricting a person from doing it is NOT the answer. It also spurs a black market for such devices, thus potentially giving funds only to create more crime in the world.