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Let's start at the beginning: Steve writes a novel; if I want to read his novel Steve deserves to be paid.
The problem with most DRM implementations is that at least in practice they appear to have a minimal effect on preventing piracy (at best). The two things DRM seems to do well are annoy paying customers, and facilitate vendor lock-in.
Mobipocket is a prime example of this in their refusal to allow their reader to be installed alongside any other reader with DRM support; at least on dedicated reader devices.
This is a clear example of both vendor lock-in and hypocrisy; especially since I have Mobipocket, MSReader, and EReader on my Windows PDA. My Palm T|X has Mobipocket and EReader.
The best form of social DRM is the kind Baen uses; even though they vehemently deny it's DRM. Jim Baen invited the readers into an electronic community, and fostering the idea that Baen Books was part of the readers' in-group. This put the publisher in the "us" part of "us vs. them" and the majority of people don't rip off their in-group.
That kind of DRM, which is based on using psychology to make people want to pay for things rather than pirate them is the only kind that will really work in the long run.
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