Playstation 3 PS3 patent, you gotta read this.

Sorry, I meant to phrase that in a way that agreed with you

I think the software industry (Sony included) will eventually come up with some way to tie the software to your machine. I think however it won't be as draconian as we think, but will instead be awkward enough to put the majority of people off using pirated software (I think the BIOS method would fulfill that notion).

What is interesting is that it's taken the industry so long to actually invest serious resources and money into a really fool proof solution. Could you imagine many other industries being so passive for so long when they're literally bleeding money via piracy and theft?