The main problem with DRM is that any halfway-savvy internet user these days can bypass it. It only hassles the legitimate buyers.
I'm totally in favor of companies protecting their property. But I think they need to find a way that inconveniences the pirates but is totally transparent to legimate users. MMOs have, by and large, achieved this - you need an active, paid account to even log into the game. But it's a bit trickier for single-player games.
I've always thought Stardock tried to strike a nice balance. They release wonderful games totally without copy protection, but in order to play online or download patches you need a verified CD key and online account. It's a sort of sanctioned "try before you buy" arrangement (or perhaps, more accurately, "the first hit is free" :P). And now I'm a loyal, paying customer.
But it irks me to no end seeing a regular, single-player game with layers of copy protection that makes it difficult for me, having purchased the thing legitimately have to jump through hoops to use. 'Cause I know there are pirates out there who don't have to go through that kind of trouble. Why do people who illegally get something for free get a version that's superior, less buggy, and easier to use than those of us who pay? That's just not right.