First about the rat system: Wouldn't that only work in multiplayer? Doesn't Steam, for an example, already deal with MP piracy quite well?
To the main topic, this is for non-MP/online content: you can't fix that, which is inherently flawed. The more likely it is to prevent piracy, the more likely it's going to annoy users and/or breach their privacy. And the real problem is that it's more likely to annoy etc. the ones with the original, legal copy. This is most prevalent in DVDs with the FBI warning and the "You wouldn't..."-clips.
Not to mention that DRMs are gris-gris to begin with. There's no proof they work at all, and they cost money and time. And since time=money => money^2, so a lot of money.
If your potential clientele is unwilling to buy your product, and prefer to get it illegally, why would you try to convince them otherwise? What other field does that? Just look at, or for, possible customers who are known to prefer purchasing. Unless people start linking buying into getting more similiar things, it will be doubtful piracy will decrease.
Just in case it didn't come clear, I don't believe that using DRMs service anyone else, except companies that create DRMs. Companies seem to implement protections systems purely out of fear, a need to feel safe. Which is bad for everyone, since some of the worst things in the history have been done out of fear.
Multiplayer and online stuff are different things however. Ability to properly identify different players is essential for proper cheater/improper behaviour -control. But I'm pretty certain that a Product Key -system would be enough. Allow only one access per PK, and that's it. Of course there's the "multi-install"-thing, but if the copies are on different users' machines, they'd have to share their gametime. Surely that would be enough? We don't have to buy separate objects for two people, who are willing to share it.
I don't have to buy two, or more, puzzlecubes or whatnot. I just solve it, and then borrow it to my sister. And I haven't heard of puzzle-makers trying to get laws passed to make it illegal, despite puzzles being an information based goods (once you know how to solve it, it loses most of it's value, similiar to video games).
Okay, I'm not certain if this is coherent, but I hope so. And that it gets people thinking. (and that Escapist did indeed have an edit-button)