Blu-Ray AND HD-DVD broken
This blog http://www.boingboing.net/2007/02/13/bluray_and_hddvd_bro.html provides a really good review of the AACS hack. It illustrates a common weakness with previous copy protection mechanisms in handling of encryption keys. There needs to be an active software protection component that deters memory scraping. Without this, a class break attack is possible. Of course nothing is fool proof in these scenarios, but you can make the reverse engineering process much more difficult and harder to reproduce on a per title basis.
Henry