The industry needs to forget about strictly control copies shared by friends and households but focus on mass downloading and illicit distribution. Using the activation system as flood control would do them more good and install tokens and hard limits.
5X2X3 5 installs a day or 10 a week or 30 in a month or 5X2X2 ending with 20 a month is a much better process that is easier to manage for the DRM provider as the data is purged every 3X days.
I am still not buying a game for more than 20 can not install and play offline, online only has to go and useing a simple automated phone in process or dialup friendly key generation site(IE you put in your install key if its valid it will give out a validation code). While the game is running it can check the key now and then to confirm everythign is on the up and up if tis bad it locks the game up. There is a beauty to the simplicity that comes with non evasive protection schemes and makes newer less polished products more worth while to the more jaded and knowledgeable consumer.
IMO the industry can not afford to lose because its us old farts that keep plugging money into the industry while the new kiddies might outnumber us they could leave for a different hobby at any time making any sweeping change in fads and trends could lead to destroy the industry.