Apple has become the #1 music store in America IN SPITE of DRM (which has got to make the labels furious with their attempts to use their DRM free music as a pawn to usurp power from Apple). Its nice to think that people will eventually "wake up" to the issues of DRM but as geeks we have to accept the possibility that its not gonna happen that way. We are now 5 years into the iTunes store and people outsider of our little tech bubble just don't seem to care. I hope the same thing doesn't happen with video but it just might. Depressing.
DRM is useful for downloadable video rentals but I will never buy an overpriced drm'd low quality video file from someplace like the iTunes store. Rent? Sure. But 15 bucks is way too high when a much better quality DVD can usually be had for a dollar or two more with extras. Its not even the cost as much as the quality for the video is just not there.
NO Molly, the most noticeable issue with DRM is not the compatibility with devices. I'd say it's sharing. If I buy a DVD I can lend it to friends and family who wants to see the movie. I can't do that with DRM'ed content. And that will still be a huge problem no matter how standardised DRM is.
Also, if not for DRM the industry could easily code with several video standards, because with digital files you can just put them through a transcoder program and convert them to any format you like. So there is no real need for an industry standard, rather there is a need to drop DRM.