Gutmann, Peter. “A cost analysis of Windows Vista content protection.” Department of Computer Science, University of Auckland, December 2006.
Summary: In order to satisfy the demands of copyright owners whose works might be displayed by applications running under the Windows Vista operating system, Microsoft has reduced the performance and increased the cost of that operating system and of the hardware on which it, or any of the associated applications, will run. The resulting system, without actually protecting the interests of the copyright owners, inconveniences and penalizes all users of the software and hardware, including those who use it only in legal and proper ways.
Vista requires that any interface that provides high-quality output degrade the signal quality that passes through it if premium content is present. This is done through a “constrictor” that downgrades the signal to a much lower-quality one, then up-scales it again back to the original spec, but with a significant loss in quality. So if you're using an expensive new LCD display fed from a high-quality DVI signal on your video card and there's protected content present, the picture you're going to see will be, as the spec puts it, “slightly fuzzy” ...
The same deliberate degrading of playback quality applies to audio, with the audio being downgraded to sound (from the spec) “fuzzy with less detail” ...
Amusingly, the Vista content protection docs say that it'll be left to graphics chip manufacturers to differentiate their product based on (deliberately degraded) video quality. This seems a bit like breaking the legs of Olympic athletes and then rating them based on how fast they can hobble on crutches. ...
Beyond the obvious playback-quality implications of deliberately degraded output, this measure can have serious repercussions in applications where high-quality reproduction of content is vital. Vista's content-protection means that video images of premium content can be subtly altered, and there's no safe way around this -- Vista will silently modify displayed content under certain (almost impossible-to-predict in advance) situations discernable only to Vista's built-in content-protection subsystem ...
As a user, there is simply no escape. Whether you use Windows Vista, Windows XP, Windows 95, Linux, FreeBSD, OS X, Solaris (on x86), or almost any other OS, Windows content protection will make your hardware more expensive, less reliable, more difficult to program for, more difficult to support, more vulnerable to hostile code, and with more compatibility problems. Because Windows dominates the market and device vendors are unlikely to design and manufacture two different versions of their products, non-Windows users will be paying for Windows Vista content-protection measures in products even if they never run Windows on them.
Gutmann also goes into considerable detail about the adverse effects on graphics drivers of Microsoft's decision.
After looking over Gutmann's observations, I have concluded that Vista is designed to be the operating system for a media player rather than for a general-purpose computer. Too much of the OS support for general computation is omitted or reduced in functionality to justify calling a PC running Vista anything more than an applicance that, in addition to is main function, happens to be able to run a browser and the Office tools. It's a consumer-electronics toy, not a computer.