Here’s my uneducated guess, pulled straight out of my ass:
1. Oriental Electronics Emporium of China (a company of a company of a company owned by the PRC) reads about the crack, then has their crack team of reverse engineers make a chip to handle the HDCP crack.
2. OEEC turns this into a 15-cent chip that can be added to any DVD burner.
3. OEEC dumps this chip into their most affordable DVD burner deck, which can be bought here in the USA for about $69.
5. OEEC sells a million copies of the OEEC 1000XR-HD.
6. Wired reviews the OEEC 1000XR-HD, they call it a piece of shit but it is good enough if you just want to use it to “legally back up” your owned content.
7. OEEC announces a cheaper version, the OEEC 1000XR2-HD, which will sell for $49 and be offered for sale worldwide.
8. The powers that be finally go around to check their email, where they find the warnings sent to them right as the slashdot article came online. EVERYONE PANIC.
9. The powers that be try to DMCA OEEC, who tells them to respectfully go fuck themselves.
10. The powers that be complain to the US Department of State due to unfair trade practices by OEEC.
11. The US Department of State trade mission to the People’s Republic of China starts to complain about OEEC’s unfair practices. The lead negotiator for the PRC raises his eyebrows, which makes an aide to place a call to their Walmart contact, who starts making phone calls. Before the sentence is finished, his blackberry buzzes: “Drop the OEEC complaint. We can’t have the Chinese pissed off at Walmart over a god damn DVD burner.”
And there you have it. All it takes is for one company to develop this chip, and the whole thing collapses. By the time anyone can do anything about it, the device has been sold in every country in the world that stands to make a profit from pirating digital content. This is why the DMCA doesn’t work.