Nice post chrestomanci, food for thougth - so much so I've got a bit of indigestion.
Interesting idea of allowing firmware updates of hardware players once keys have been leaked. This might be a catch 22 for Hollywood, how do protect the firmware? Encrypt it – but you need the to allow the hardware player to decrypt it, but the reason why you need the update is because the current key that you could decrypt it with has been leaked
Does any one know if a DVD hardware key has ever been leaked?