Sadly I do not think Ubisoft is going to give up despite this, I figure they are going to continue to support the system and otherwise figure they have some bugs to iron out...
See, unless people stop buying Ubisoft games because of this, they have no reason to listen. Gamers in general seem to be viewed as a crowd who will whine about stuff like this, but never take any meaningful action, we'll spend the money even as we cry.
"Settlers 7" came out after the annoucement about the DRM. In general I have little sympathy for *MOST* people who bought this game knowing Ubisoft's policies. Granted there might be a few innocent victims out there that don't follow this kind of thing on The Internet, and I have sympathy for them... but otherwise they pretty much got what they bought into.
As ironic as this might sound, I was never a huge fan of Assasin's Creed (got the first one despite reservations based on the theme, wasn't impressed enough to buy the second), but I was looking at "The Settlers" a while back because I tend to like strategy games. However I nixed it off my list because of the DRM policy. I decided to buy a differant game instead and shifted the money I had saved for it to a pre-order of "Agarest War" for the 360.