For far too long do companies make money over very little technology enhancements.
Mickeysoft gave us DRM. Intel gave us Chip Id# and AMD gives us Anti-Virus protection in cpu's (yeah right). This is not in the sake of the netizen and the computer user/owner, but 100% for the benefit of the above conglomerates.
Fortunately there are some who resist this kind of semi-laws. You are absolutely not obliged to use the Media player if you use Windows XP and you are absolutely not obliged to install DRM codecs.
The trouble though is that all software is licensed, even the free and GNU. This means that although you are the sole owner of your hardware, none of the software you have is yours. NONE. Not even the freeware software.
So, what will the companies do to make sure you have no clue on how to handle your own media? Make it more difficult (drm,etc). Make it illegal (dmca) or enclose hardware/software bundels. Ever installed Windows XP Media Edition and thought you had absolute control over all your movies? Or dvd regions? Or recording?
The 2nd problem is that all media is licensed as well. None of the dvd's, mp3's and audio cd's you have are yours. You have been given a license to listen to it (joy!). No matter what you do with it.
And here's the fine culprit. Since the companies use license schematics to make sure they recieve the most money out of media, software or hardware, you can turn the (lack of) license schematics against them.
Analog media doesn't have any form of protection and probably never will , except for a watermark. The watermark hardly works, so what's next? As Crabbyaplleton already said: get rid of the analog hole.
So, wha'ts the solution to all this panic? Simple. Do NOT update your software and hardware. Use old codecs (license free), use old media players (not supported, but hey, they play everything you have) and use old hardware. Especially use old drivers, because device drivers rarely have EULA's. Sure, they are the sole ownership of the company/people that wrote them , but they usually don't have any form of EULA.
Don't accept DRM, don't install it and use old software till eternity. There is no law you shouldn't use Napster 1.0, Winamp 2.0 or Windows Media Player Classic.