I don't know why everyone thinks this is some new high tech thing.
i agree with you here. i feel tho that because ppl are perplexed or don't fully know how this protection works in-detail, they are theorizing ... some right, some wrong.
to date the facts are that this protection is in the audio stream. thankfully, that is all. audio is easy to work with. you have an amplitude, frequency and time. and it appears to be present in 1 or more channels. regardless of where the signal is or when it presents itself, even tho it's in the analog spectrum of the stream, once the markers are identified, they can be removed by negating them by subtracting the phase shifted counterpart. so noise cancellation is the direction that cinavia hackers will look into.
the more serious problem may surface where they adapt the algorithm to embed a unique watermark for each individual audio channel, then do the same for video, where they can ID individual pixel colors at certain frames to use for detection.
in the case of audio, lets say your encoder transfers 7.1 audio to 5.1. that could be a cinavia check. in the case of video, if the fps or resolution are changed that could be another check.
this protection scheme has the potential to get really really smart.
but at the end of the day, i keep my mp4's within the walls of my network, and only i play them on my devices, so whether they have cinavia or not really only bothers me when i want to use the PS3 as a playback device.
it will bother me more when cinavia is included in all the kinds of hardware that can stream. that's when i stop buying discs and just use netflix or blockbuster.