The flaw in that is hardware can fail. And it can still be circumvented through the use of creating something to emulate it. I also wouldn't want to fill up all my usb ports with stupid crap like that.
Bottom line is good games sell, bad games don't and pirates will always be pirates
You can disagree with it all you like, but I think it's plainly obvious that piracy is eating into the profit margins of companies.
It doesn't matter about the amount of profit which is made, just the fact that more is made in consoles than PC games for this very reason. Other reasons must also be causing it, but piracy is a big one of those.
PC is a platform competing with consoles for dominance right now, it's just going to get worse for us unless we can solve these problems some how and demonstrate we are worth the time for developers.