Take a good guess why they want to copy protect all their content. Because they want to earn from it, infinitely.
The actual problem is when copyprotection becomes such a nuisance that consumers won't take it anymore. And how are the big companies gonna convince consumers to get rid of their old, but perfectly good, system and buy a new, more protected, one. By using new technological features such as High Definition and Dolby 7.
The fun part gets when it doesn't really matter because of compatibility. You can't encrypt a normal SCART-out signal too much, because the televisions won't play it anymore. This gives the consumer still limitless opportunities to make as many backups as he wants. I doubt HDMI or other products will tighten the grip. And if it does, the community may find something about it, just like they already did with Blu-Ray.