I think that, in the end, media companies will figure out that no DRM will stop a really determined hacker, and realize that they are only alienating their good customers.
They may not like it, but they may have to trust their customers. I know that the attitude in my generation (now entering college) is that there isn't really anything wrong with downloading copyrighted stuff from, for example, bittorent, but if the content is well made, you should pay to get it legit. In the entertainment industry (and I think this what the industry hasn't understood so far) people will pay for well made content, even if it is available for free from pirates. People want to support the people and the companies that make good content so that they can continue to do so.
Look for example at webcomics. Megatokyo is available for free online. And yet, people buy the books, buy the merchandise, and the creator makes his living off the comic. I really do think that the rest of the entertainment industry could offer something similar. They could even bypass the pirates and offer partial content for free as a hook to get people to buy the whole thing. Imagine being able to watch half a movie online for free. Can you imagine how many people would spring immediately to buy the second half?