I've been in the computer game since the CP/M days though I am by no means a systems level guru or security expert. No doubt MS and others can make things really tough. I just have doubts that they can do more than shift the boundary somewhat more in their favor on this. Given time, any algorithm can be cracked. Even hardware is not impervious. AMD locked their CPUs to prevent overclocking, someone came up with the so called Goldfinger cards to bypass it. Requiring everyone to be hooked to the 'net to run their systems is unrealistic and unworkable. For every dozen incompetent cracks there will be one sophisticated one that works. Offense-Defense, the age old game in war, cryptography etc. applies equally here. One side may gain a temporary advantage, but only temporary. Sure, MS could come up with a super hardened, phone home crack killing system but they also have to sell it to govenments, institutions and individuals from Bangor to Bombay. There's a certain point where security and intrusion become negative selling points. Penguinisto's vision of the future may be correct, I just wouldn't bet too much money on it.

"Democracy is a pathetic belief in the collective wisdom of individual ignorance." - H. L. Mencken