Possibly, yes. What DRM does is allow the content provider to decide precisely how you get to use what you pay for (though it often is easily bypassed at the software level). So if the RIAA or a game publisher code for this new hardware-level DRM onto your music or game CD, they could prevent you from ripping MP3s, making backup copies, etc.

I just really dislike DRM for this reason. It assumes everyone is a criminal by default and takes away their rights to do what they will with what they buy.

As a followup, Intel's responded to the article mentioned above here.

According to what I was able to look up about DTCP-IP, it allows content to be transferred over an internal network, but not over the Internet. Still, I (and others) find this quite troubling.

   I sincerely hope not too. I'd like to think that millions of people would boycott both companies, but there hasn't been that sort of commitment to anything since the original Divx.

The link I posted above delves into this also. The Inquirer article is the PR damage control which Intel is now putting out to everyone. I think everyone should treat this with a grain of salt until Intel comes clean on technical details on exactly how they're making these implementations. It's encouraging that things may not be as bad as they were first reported, though.