They didn't fix any flaws. They just deactivated old keys and issued new ones. Supposedly InterVideo will be patched to be more secure (aka try to hide the new key). Maybe that is what they are talking about but it still does not fix any flaws by a long shot. Just look at all the cracked versions of software out there that have all kinds of fancy safety and protection mechanisms and are still cracked daily. As long as its in memory in unencrypted form for any amount of time, it can be obtained.
What they have done is analogous to re-keying a lock that is susceptible to being picked -- it's only a matter of time before it is picked again. Lather, rinse, repeat. And how long before a hardware player is cracked? If I had one I'd bust into it to see what kind of flash it has. It probably has an on-board JTAG or other programming port to dump the memory like most consumer devices which are mass produced and then flashed assembly style, making obtaining the key quite easy. When the players come down in price I fully expect them to be cracked on a daily basis.