When I hit the Apple site today I saw a link to Steve Jobs’ “Thoughts on Music”. Perhaps he’s preparing for his retirement and will finally become the guru himself, penning the occasional missive from the mount (or at least, his second floor office in the Apple Campus).
Steve pretty much says 1) the iPod can play MP3’s (amazing how the rumour that it can’t do so has spread!), and 2) DRM is the fault of the music companies (by the way, they’re mainly European owned!), who require it of Apple, even at the same time as they sell unrestricted music on CD’s. So get the music companies to allow DRM to be removed and and Apple will happily go along (after all, Apple makes its money selling iPods, so they’d be happy not to have to expend effort on DRM engineering).
Steve also states that if their DRM is compromised they’ve contractually got a few weeks to fix it before the music companies can force Apple to remove their content from the iTunes store. I’d be guessing that somewhere there’s FairPlay2 waiting to be deployed on the iTunes Store, iPod updates, and iTunes software updates in the eventuality that someone manages to break FairPlay.