The thing about HDCP that really gets me is that it seems focused on stopping the ability to record the video output between the video hardware and the display. Who ever bothered pirating movies by capturing the output at the SVGA or DVI port? Sound doesn't even come across those channels... what would be the point?
The point is that the whole thing only works so long as they can close every possible hole. That includes holes that haven't been exploited yet, like
this one.
For the same reason, the next-gen media formats allow them to "revoke keys" for any players that get cracked in the future. Basically, they store all the decrypt keys for the movies on the movies themselves, in an encrypted format. If you buy a HDDVD/Blu-Ray player whose firmware is later hacked, the media companies can decide, on all future releases, not to include the decrypt key for your model player.* (Fuck knows what'll happen to them if they even try to do it, though. First, everyone with that model player will then have no choice but to hack it. Second,
class-action lawsuit.)
*Actually, I think they just make it impossible for your model player to decrypt the file containing the decrypt keys.