The thing they MUST realize, but probably won't...
is they will NOT grab the attention of very many bittorrent users if the alternative is "You pay us, you get a file that is locked to a single machine, and you must use our shitty proprietary video player, on a specific version of Windows, which might or might not work."
If I buy content, I don't care if it's watermarked or something, I have no intention of buying stuff then sticking it right back up on bittorrent. What I care about is being able to get a video, type "mplayer video.mp4" and have it play! Also, I will usually play it on my desktop, but I want to be able to freely copy stuff to my netbook and possibly occasionally to my phone.