Yes, Randon House seems to be embracing DMR laden distribution fully while making every effort to maximize profits. I am afraid that we will be seeing more and more of this as publishers attempt to adapt to the new medium. Whether this distribution system will prove to be more profitable and sustainable than the WebScription system or the more "traditional" ebook store system remains to be seen. It will be interesting to see what happens with the Barns and Nobel entry into this field. If B&N adopts a DMR free multi-platform distribution system it could force Amazon and publishers to rethink their current position while giving publishers access to a turnkey distribution system that reaches more customers and devices.
Meanwhile a new free library is no bad thing even with the DMR. I probably won't be buying books from Random House but, since I am Kindlized, I will be taking advantage of every freebie I can get.