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One of the other questions (the biggest for me, and I think for many) is the question of portability. We see this here all the time, expressed more or less as, "I hate DRM because then I am tied to {Mobipocket, eReader, Sony, Adobe, etc.}"
To me, most (if not all) of my objections to DRM would go away if I can be assured that the books I buy this year will work next year. Or, more on point, should Sony decide to yank Connect Store, quit selling the Reader, and shut it down a la their music service, how will I then enjoy my books when the Reader breaks?
The best solution I've seen to this are stores like Fictionwise, which vends it's books in different formats. Or Baen, not just for the DRM-free content, but because they can be D/Led in HTML, RTF, etc.
It's not quite like the ATRAC thing, as even Sony is now suggesting that you burn your files and then rip them back in MP3. The equivalent can be done with screen or scan OCR, but I've yet to see a program that's really good and fast at it that's remotely economical.
One suggestion I mentioned would be a third party company who will convert your secure files for you. This has immense logistical problems, though.
Another potential solution: Find a way to make the DRM independent of the file format - something like a universal DRM format for all types of eBook file. What I'm thinking here is it wouldn't matter what format your book is encrypted in ~ and the file could be converted to any other format safely (from the publisher's perspective) because the same DRM still exists on the new converted file.
The biggest limitation here might be the economics of publishing itself: What motivation is there for a publisher to adopt either such proposal? It's in the publisher's economic interest to have you re-pay for books every 3-5 years. I'm not sure if there is a deliberative planned obsolescence in the publisher or software company's strategy, but it sadly would make sense if there is.
Also, the notion that any DRM scheme may eventually be broken would hamper this idea - does the publishing community as a whole really want all its eggs in one basket? But that would depend on just how secure such a system could be made.
Last idea: Have your purchase of the eBook on file with the publisher, not just the vendor, with a commitment in the licensing from the publisher that you are entitled to that particular text in any format the publisher uses, now or in the future. Again, it's like Fictionwise multiformat somewhat, but doesn't just rely on the success or failure of one eBook retailer.
Of course, any such solution which ensures portability wouldn't satisfy everyone.... There are those who will still make the argument that all DRM is evil in and of itself, and/or those who feel that they have 'ownership' of the actual text upon purchase of the book. But I still wonder if a solution couldn't be found that removes the concerns of the majority of the book-buying public - one which doesn't cause any hardship upon the end-user at all in comparison to dead tree format.
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