Pretty much. Also because it caused Digg drama.
Oh, no argument there. Piracy has been more convenient than legitimate buying for some time now in a number of fields, and copy-protection never stopped a dedicated pirate.
A lot of these arguments tend to run into the "But this is not about PIRACY! It's about playing discs in OPEN-SOURCE PLAYERS!" line, and as it stands right now, AACS can most likely be broken by pirates but not by open-source players for the average user.