Because then you'd have new dvd's that don't work on most dvd players... consumers would get mad... and DVD is kindda getting obsolete now that there's bluray.

I think he meant dropping the encryption all together. Would players not be able to play non-encrypted discs?

DVD encryption combined with anticircumvention laws mean DVD players that can skip no-skip content or play out-of-region DVDs aren't sold to mainstream consumers.

Without anticircumvention laws, there would be no incentive to use encryption. Such laws have nothing to do with piracy; they're about maximizing revenue from paying customers.

because it allows control of hardware vendors via anticircumvention laws.