I will buy a DRM'd book, but only if I can use software to decrypt it into the format I like. I was reading a Star Trek two parter. The first part was available in Mobi format, which was great, since I use a Cybook. The second part could only be found in lit format, so I converted it to text and then converted it to Mobi to read on my Cybook.
I don't know the legality, nor do I personally care, but If I pay for a book I want to read it on the device of my choice. These competing DRM'd formats are a nightmare and this is coming from someone who prefers ebooks over paper. Imagine what ebook virgins think when looking at all these formats and limitations.
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