Well Chris, you see it's like this:
You can tout your reasons for being against DRM all day long, but you know well that the side benefit of being able to steal the content and mass distribute it is the elephant sittnig in the living room. You know it's there, but you don't want to talk about it.
The copyright holders have the same gig. They talk about their reasons for DRM, but fail to point out that they will try and use it to extract more money from the consumers.
So both sides are disengenuous.
However, no DRM is not feasible in the day of perfect recordings and worldwide distribution for free. So option 1 isn't really an option.