I'm glad to know that the non-Redmond programmers have been hard at work undermining the control freaks. Bully for them!
It should be noted that Microsoft would likely have been very happy to include built in DVD playback without needing to adhere to the DRM requirements. Unfortunately, being as big as they are, the media companies would have sued them to the point where you wouldn't be able to play DVDs at all in Windows.
In other words, Microsoft could take out DRM tomorrow -- the problem is they'd have to also take out DVD playback completely. Blame the media companies. Microsoft, unlike people's favorite Linux distributions, doesn't have the luxury of ignoring either civil or criminal law.
Hell, as far as Europe is concerned, they're lucky Microsoft's allowed to include a CLOCK.