Alright, didn't read the whole thing, but it sounds like the problem lies within bluray playback? So thats it? Thats what people are bitching about? Are there that many people that watch blu ray discs on their computer?
No, to outline it for you since you are too lazy to read it yourself here it goes:
1) Digitally assigned drivers are required, which prohibits third party open source drivers, and/or makes them impossible to run, or extremely hard in some cases. This also forces the developer to purchase the dev kit from MS to make their drivers digitally assigned, which in return they charge more for the product. If it costs more to make, they charge more, simple economics and business models. This also makes the developer create drivers in a certain manner which a lot of times makes them suck.
2) HD play back, requires a specific set of DRM rights which very little video cards actually fully support. So, if you went out and bought the very first generation of expensive DX10 series video cards, you may have just wasted your money. This also has the same problem as above, it costs more to develop so it will cost the consumer more to use.
3) Limits functionality- this is because when you develop from a set system you may lose certain freedoms that have existed before.
4) Licensing costs, you must subscribe to this model of DRM to protect your content you develop, but at the same time pay license rights to the IP owner to use it. This goes back to number 1 driving costs up.
5) DRM is not standardized in any way. So, if MS deems it necessary to not support certain standards of DRM (ie their competitors) then you are wasting your money on buying DRM content.
Of course all of this can be bypassed and if you read online how people have bypassed the DRM to play back HD content it is fairly simple and most users can figure it out. However, that does not excuse the fact that they are driving costs up for you, and they are giving you a less functional product and forcing you into a market.