If he really loved Apple as much as he claimed he'd have a 3GS AND an iPad to go along with his iEmptyWallet
You're right in this isn't a cut and dried DRM is teh evulz case. It does however highlight that everyone following the rules, forking over their cash, and generally being socially acceptable, still got screwed over by a DRM system. I'm assuming the movie theater(s) in question paid all the money they were supposed to to all the people involved. All of the movie goers paid over all their money to legally see it in such a way that the movie studios would allow, if only barely (the customers did leave the box office with their souls presumably). All of them were screwed when somewhere along the DRM chain someone dropped the ball.
This goes along with the DRMed mp3s that no longer work when a company kills its servers. Office 2003 not opening files because of a bad cert, etc. The pirates remove all these 'security features' and the products work so much smoother. I have used pirated copies of software that I legally paid for due to activation/reactivation rules, and I'll probably do it again.
This will never sell. It doesn't fit into the entertainment center paradigm. It looks like a puzzle box and a toy.
I don't think it looks like crap, but it definitely doesn't look like it belongs in my A/V cabinet. Just make it look like a DVD player or something close and I think it would have a better chance of taking off. But, then again, the only people who will be buying this to begin with already know what Boxee is, which means this thing was never going to sell well anyways.