And here I thought I was explaining in simple non-jargon language.
I'll try to break it down.
The FTC won't wave a magic wand and make the DMCA go away. They can't overrule Congress, and Congress says it's illegal to break DRM (with certain exceptions, etc.).
What they can do is spank companies that do bad things with DRM. (Well, worse things than normal anyway.) Like, say, outright lie in advertisements about what their DRM will allow, or make DRM that does bad things to your computer (Sony rootkit).
By and large, the Town Hall meeting ended up being a lot of ranting about aspects of DRM that the FTC can't do anything about. (And I'm as guilty as anyone of that, with my Mobi/Amazon question.) In the end, it's a pity that the FTC can't do anything about those aspects. But on the bright side, at least a lot of the problems with DRM got a good public airing, and people might at least feel a little better their views have been heard.