Just my 2 cents.

If you make a product that you wish to be paid for then I understand why you want to protect your investment.
However, once I pay /my money/ that /I earned/ though hard work for a product, I no longer care about your opinions on how I should or shouldn't use the product. That choice is up to me.

Digital Restrictions Management is evil and I will not stand for it because it allows others to dictate how I use the product I purchased. The only experience I have really had with DRM is MSN Music. 6 hours, a Debian box, OS X box, 3 Windows boxes, and an hour w/ tech support later I had invalidated my license for my 128kb mp3 album without ever listening to it. 20 minutes on pirate bay and I had a FLAC version of the album. I paid MSN for the album so I feel no guilt in the matter and I have stood against DRM ever since.

I do not share my music out with the world. I don't hand copies out to everyone I know. It is even extremely rare that I burn a Music CD! I just want to be able to play my music on my Debian box, I want to stream it over to my Xbox Media Center to listen in the living room, and I want to take it with me on my Rockbox Ipod. If there truly is no DRM that prevents me from playing my music where I want and how I want, then what do I care that there is watermarking?

The only thing that bothers me about it is how they will handle the situation should someone be caught with a file being distributed. The person that is sharing terrabytes of data with the world should be treated different then the 7 yr old girl who gave her friend a copy. To me there is a big difference between the college student who doesn't realize that their C$ share is still active and the college student that has a shared folder called "Listen to my Music collection" and has 20 different p2p programs on their computer (both of which I have seen recently while scanning the network at the college I just graduated from).

I am all for getting rid of DRM. As long as the watermarking doesn't mess with the quality of the sound and doesn't restrict where and how I listen to it then I personally don't care. It protects their investment while not harassing the paying customer. Maybe thats just me but I fail to see the problem with watermarking. Any one care to explain what I may have missed?