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The problem is the tower of eBable that we have. Right now, the portable eink devices only support DRM that has keys inside the files. The problem is that while social DRM might stop some people from giving out eBooks in the first place, it also might stop them from purchasing them as well. A lot of people do not want to have their info out there in that way. So using social DRM as much as it can do good, it can also be bad as well. if people don't want it because then your files contain some sort of personal information then it won't work.
To be honest, there is no DRM that will make everyone happy. It just doesn't and cannot exist. if I buy an eBook today, I usually buy it in a format that I can remove the DRM and format shift so that I can keep my content. If I was to decide I wanted a Gen3 and gave my wife my 505 and we sold her 500 then I would want most of my purchased content to still work. And it would. So I'm not totally screwed over.
If too many people find DRm getting int he way such that they either have to do without their purchased content or repurchase it, you'll find more and more people staying away from eBooks. Basically, DRM is just a way to say to people, we think you'll be stealing our content. It basically tells people theiy are thieves when they have not done anything wrong.
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