Interesting. They stole an industrial design from Sony and are using it. That's horribly wrong and illegal. If they did the standard black box way of making the exploit, it would be much better.
Still, stuff like this will always happen. DRM shouldn't be used on devices, period. Especially when the consumer OWNS it.
I felt the same way. I love that someone has finally found a viable, consistent and unbeatable way of doing it, but I really don't like the way that they got it done (to the extent that I'm not sure if I even want to buy one at this point, whereas normally I'd be all over something like this). I'm sure some enterprising dude in Hong Kong will figure out a way to reverse engineer both the hardware and the software so they can emulate the functionality, though.
Michael: Jodie, how's my schedule look for today? Jodie: You've got a conference and dinner party at the Japanese Embassy regarding wildlife protection. Michael: Oh, yeah...sorry, but I'll have to cancel that. I'm heading out to save America!