It's a step towards DRM.
When I say people will get screwed, I'm talking about the long term outcome of everything.
This is a loosely thought up prediction, I for one have a hard time believing that DRM is as bad as people and the media portray it to be.
I don't believe that M$ would do anything that breaks the law, the privacy act for one prohibits things like getting personal information from your PC and then transmitting it to everyone in the world without your permission.