Very well said
Like you stated, it isn't that Linux can't handle the technology, or even that there isn't an interest in adapting the technology; the key to the Netflix problem in Linux is an excellent example of exactly what is WRONG with DRM: That the concept of DRM is abused and twisted in such a way as to strip the consumer or end user of his or her rights. In this case, Microsoft, as keyholder to Netflix's DRM, is refusing to share those keys so that others - including Netflix - can benefit. In a sense, Microsoft is wielding DRM, even to the detriment of Netflix, ironically enough, in order to tilt the playing field to their own (Microsoft's) advantage.
This is PRECISELY what is wrong with DRM: It is NOT fair; it is NOT balanced; it does NOT represent good faith by the digital rights owner toward the consumer. The consumer has ABSOLUTELY NO protection or rights where DRM is concerned. Case in point: I buy digital music from Company X. That digital music comes with DRM that requires, among other restrictions, that I periodically authenticate against Company X's DRM servers to be able to keep playing the music that I purchased through them. Company X later goes out of business, and their DRM server goes bye-bye, along with MY ability to use the digital content that I rightfully bought and paid for. Where are MY rights and protections? Oh yeah - your DRM stripped them from me.