The automaker theory is partly true. Yes automakers pay much much less for their parts. However they have 3 year lead times, a staff that works on it for 3 years, build a hundred cars before the first one ever hits production and create so many one off parts that they do not make return on their investment until at least the 2nd or 3rd year of production.
Not to mention there is a certain amount of money 'baked' into each car for medical costs/health care, and the biggest warranty.
Just how long do you think its going to take before HDCP is worthless just like every other copy protection system thats ever come out?
If it can be 'flashed on' then it certainly can be 'flashed off'. It won't be long till someone makes a box that takes a HDCP signal, de-encrypts is the right way and passes it right out on un-encrypted in one form or another?
I've done some reading on HDCP and the problem with it is, your selling a standard and that standard is contained in both pieces of equipment the consumer purchased, once that hits mass market so will some type of hacking system for it.
It may not happen in this country but it will happen somewhere in the world. Look at the nice 1080i scaling DVD players you can buy from Hong Kong without HDCP, the only one that does it here in the US has HDCP.
Even the numbers you quoted on pricing and the small number of HDTV makers out there, how long do you think it will take for someone to put out a non-HDCP "reciever" for the most popular HD TV's?
Replace a logic board that does not contain HDCP?
Its not that far fetched, check out how many Xbox mod chips there are, the same idea. There are ALOT of very smart people in the world, all over, and the thing about the internet is those smart people can now reach the mass market very easily and without alot of reprocussions. I forgot the name of the filesharing system that is run out of a Palestinian Refuge Cam in Jenin, that is the ultimate sign that where there is a will, there is a way. They interviewed the owner/developer, he said who is going to come into a refuge camp basically in the middle of a war zone for this? He is untouchable and knows it. Many years ago it would not have mattered but now all it takes is a computer and a line. If someone were to come up with a scheme to defeat all this how hard do you think it would be for him to get a South Korean or Taiwanese shop to build boards, online ordering system, drop ship the product and there are plenty of online CC vendors to handle the transactions. You could run an entire operation from a single computer and never leave your house from anywhere in the world, thats a huge reason why HDCP and other products like it will never succeed.
Even Apple's vaunted copy protection scheme was 1/2 way cracked, granted it was analog only but IMO thats just because no one was bored enough or saw the reason to completely strip it out.
I still believe copy protection is a waste of time, better to make the product price competitive to reduce piracy. I think thats part of the reason why no one has really gone after Apple and iTunes, its a great product for a decent price.
Your last statement is completely true and I agree with you 100 percent, thats when I'll buy my HD DVR