I think there is a reasonable amount of DRM and an unreasonable amount of DRM.
The point where it crosses the line is where it goes from an incovenience when installing the game to the point where it's an inconvenience when playing the game. Perhaps the worst case of ridiculous DRM is Diablo 3 - when it gets cracked the pirated version is going to be a far better product for the single player game than the legal version and that simply should not be the case.
They are also right in saying that the number of pirated copies != number of sales lost. The actual number of sales lost will be a fraction of that number.








