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Interesting thought experiment. I agree that one result would likely be stronger DRM in the digital universe. But another might be that the price of pbooks would be driven down - paper plus low costs equals a kind of DRM based on economics.
It is also possible that the courts would replace, via the common law, the defunct statutory law.
In the digital universe, we might find that DRM protected by programs which erase the ebook if DRM is stripped, or even programs which counterattack the computer on which the stopping is attempted. There could be Trojan horse programs embedded in ebooks that activate when the book is moved to another EBR.
Pricing mechanisms would change. The idea that we own ebooks we buy might completely disappear, replaced by a rental model along the lines of Overdrive.
Recorded music would continue to be made only as an adjunct to live performance. Studio music will be limited to genres like classical & jazz, where the costs can be recovered by initial sales. Live performances might increase, and be more profitable.
The commercial movie industry would collapse into television & cable, except for specialty theatres like art theatres. Theatres would turn to live broadcasts of concerts, theatre and opera.
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