richms: If there is no DRM in a subscription service then people will be able to keep using the content they have licensed after they stop paying, they will be able to share the tracks with non subscribers and there is nothing stopping them just joining for a month, getting all they want and then canceling it.
The encryption just needs to work well enough to inform people that what they are doing is not within the license they have the goods under, That is why I have a problem with the use of the words "effective" in the DMCA since that opens up the argument that once it can be cracked easily (as is the case with DVD stuff) that you can violate your license without penalty.
The fair use thing is an issue, but IMO that is better tackled by allowing limited generation of a non DRM version that is all that is needed for the use in question, which should be able to be audited by the rightsowners for correct use of it.
What IMO does need to happen is that a clear difference between sale and license gets established, as right now you have people "buying" tracks off things like iTunes etc when they are not purchasing, they are licensing it for specific playback situations.
I appreciate that your arguments are comprehensive and well reasoned, but I do disagree with them.
To answer your first question, the availability of new content will keep people coming back, also you would be surprised that I really don't think that very many people would slurp all the content like you have suggested, but for the most part use the service as a convenience and as intended. I honestly don't think this will be much of an issue in practice and will be far outweighed by not having problematic DRM technology interfering with the use of the service.
Another point I would like to make is that we feel that non-commercial copying should be allowed under copyright law anyways, so this becomes a moot point in light of that.
I do agree that people are left with the impression that they have "bought" tracks off of services such as iTunes, when in fact they ahve only licensed them for use under a very restrictive set of circumstances.