The urge to weigh in is getting too strong...lol
Here's what I think: It's a question of property. I own the disc(s) that I just bought. I gave no agreement, verbal or otherwise at purchasing, save on a "cash for the product" basis, with no implication of agreement beyond that.
That product is now mine, to lie to, to copy, to alter,to give away, to resell.
The only part of it that does not belong to me is the actual business of the product, and by that I mean that I cannot resell it and claim that I am its creator.
"Piracy" only exists when it infringes upon proprietary laws.
Last time I checked, I did not rent the product, and neither did the person who gave me the copy, which is a reasonable assumption based on my own options and information.
This new chip is reasonable, but it is also reasonable that it will be circumvented easily.
As for its mass market appeal...well, we all know what will happen to a product that creates a standalone tier in the relatively open tech field.
To survive, it will need backwards compatibility, or compatibility with non-chip friendly games. Or make me coffee every morning.