The problem is that most analysts don't have a clue how the gaming industry works. They figure it works like every other industry out there but for the most part it does not. Sure, the casual corner of the industry works very similar to any other market but the hardcore corner of the industry works very differently.
Since the hardcore corner of the industry keeps up with the industry on a very regular and frequent basis you have to employ more psychological tools rather than you would with the casual corner of the industry. Positive reinforcement (novel game, official community, free DLC, etc.) towards buying a game works a hell of a lot better than negative reinforcement (DRM, one-use copies, etc.)
Just compare Minecraft to whatever DRM riddled Ubisoft game you want to. Minecraft was made by one guy with a budget of nearly zero. Notch still succeeded because he provided a novel game with free major updates without any wicked DRM. He ended up selling 2 or 3 million copies so far. Remember this was on a budget of nearly zero. Ubisoft probably hasn't even sold 2 or 3 million copies of their DRM riddled games that they have dumped millions into.
If major publishers continue to go down this path of arrogance they will soon be pushed to the side by indie developers who provide what their targeted customers want.
And I think that despite the general negative outlook on this "always-on" DRM from people on OCN, a vast majority of the general public that buys PC games won't really be all that deterred from buying it, and unless the service gets shut down, they probably won't even notice it.
I'm not at all for this sort of "always-on" DRM, and I think it's quite silly in a lot of logistical terms, but I also think that sometimes a lot of the moaning about it is just irrational people having mob mentality whenever they see the term "DRM."
Yes, there have been very obvious times when it's failed quite miserably, and only hindered the legitimate users, but a lot of the time most DRM methods work seamlessly in the background without any indication to the joe-schmo user.