The *AA don't understand technology and don't really want to. Many people think that DRM is about preventing copies, but it's actually about showing good faith. That's why they allowed Apple to use a DRM system that is much weaker than their competitors: Steve Jobs gave them the impression that he was on their side and that's all they wanted.

MS is just taking it to the next level. They promise to investigate some watermark technology (that they know won't work) and get some concessions from NBC in exchange.

Microsoft is now essentially denying these claims:

http://zuneinsider.com/archive/2008/05/07/just-so-no-one-get...

This whole idea seems a little outlandish, even for Microsoft. What executive could possibly think they would sell more Zunes from having NBC content available then they would lose from people who couldn't put their own media on the device?