To properly understand the strategic concessions Microsoft made to the entertainment industry -- concessions that led MSFT to deploy a software-based version of the Advanced Access Content System (AACS) in Windows Vista -- you need to carefully consider that third aspect of neoliberalism.
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[WS:] Aside the fact that the practices you describe are an example of cartelization of IT - which is the antithesis of "liberalism" i.e. free market - your piece is very informative and I forwarded it to our techie. However, this duplicity or double-speak seems to be the hallmark of the "new economy" moving toward oligarchy under the banner of popular appeal and freedom.
The question that I have after reading your piece is whether there is a light at the end of the tunnel? In the past, cartels proved to be a very effective and long lasting mechanisms of control c.f. Japan, Germany or x-USSR that can be thought of as a gigantic cartel. New encryption technologies seem to further strengthen that control. Is there a way out?
I would like to think that one way out is that eventually the IT cartel will encrypt themselves out of the market. That is the high cost of encrypted copy-righted products and content will give competitive advantage for non-encrypted products or contents - non-Microsoft software, non-Hollywood content, etc. Although that makes sense in theory, the reality seems to be very much different. Non-cartel products, such as Linux or community access television do not have many takers, even though they are available almost for free. Apparently, there is little demand for these products.
Someone mention that most computers come with Windows already installed, but that is not quite true. It is certainly possible to buy "bare bone kits" and install whatever OS one wants. While that may be a bit over the head of an average user, and entrepreneur can do it and sell it as a cheaper alternative to Windows machines. In fact, there used to be a product on the market called "Lindows" which was just that - a PC with Linux (plus graphic interface) - but it died, I guess due to insufficient demand.
It seems that cartels survive not just due to their control of the market but also due to the strong demand for their brand of the product. If this assessment is true, hacking the encryption code will do little to end the Microsoft/Mac/Hollywood oligopoly as long as there is high popular demand for their brand of products.
What do others think?
Wojtek