Article about next-generation movie/DVD encryption, contains some nice details. Seems that they at least will be using a scheme where the real keys are encrypted with a dynamic set of player-keys this time, for easy revocation of compromised keys. They've also learned that baking your own cool crypto is not such a good idea (AES will be used).

I completely agree with the guy quoted in the end of the article though:
"As long as I have the technology in my living room to watch it for myself, I can modify the system to extract the video. They can make it hard, but they can't make it impossible. They are living in a fantasy world."