Exactly right. Since DRM is both evil to the typical user, and frequently easily cracked, it doesn't provide real value. I'd rather trust people to be honest and support a business they like. Besides, there are much easier ways to steal music (p2p comes to mind) than to fuss over Magnatune's m3u files.
Of course they can be "easily cracked" -- they are not protected in the least, because I want Magnatune to work easily and simply on every computer, and not spend my time fighting my customer base too prevent 1% who wants to "download it all for free" -- those people would clearly never pay Magnatune for music anyhow, even if we had DRM to "protect it".
Also, because you can "'name your price" when you buy from Magnatune, if you don't think something's worth much, you don't have to pay much.
-john (who runs Magnatune.com)