This is so true. No matter what "protection" you put on something, there is always someone smart enough to crack it. Look at all the modchips for PS/PS/box and soon enough PS/box (if it hasn't happened yet). If someone can create protection, someone else can crack it. I know its not as simple as I am making it sound, but really the only people you are screwing is the common user. Hackers will always find a way around protection. PERIOD!!
This is the entire reason that the DMCA exists. The "experts" that designed the encryption used in HDCP knew that it would be cracked one day (probably sooner than they expected). The DMCA is the other edge of the sword, with stiff fines and prison time for anyone convicted of circumventing the encryption. The algorithm itself doesn't have to be very good to be covered by DMCA.