rampancy: I suspect that on some level people like that actually do have some understanding of what DRM actually is, but the thing is that they don't actually care, because they haven't been burned by it yet. It's not a problem that's on their radar, so why should they care?
tinyE: The reason I get burned by DRM is because of my location and limited speed/bandwidth. Sometimes when people come up here and get hit by that I think, "Now they'll learn." but all they ever learn is that they never want to get anywhere near this part of the country again. :P
Yeah, but for most people that's really more of an annoyance (though I agree that that would be a legitimate reason for not wanting DRM in your game, and problems like that would break me on DRM too). How many people feel intensely burned/angered from say, EA or another publisher taking down their activation servers for a game? And do so to the point of never buying a game like that again?
I remember a long time ago paying full price ($59) for the old OS X Wine-based port of HOMM V. It used online activation tied to the servers of the publisher/developer (Freeverse Software) who wasn't actually UbiSoft (they just got the rights to do the port and distribute/sell it from UbiSoft). A few years later, Freeverse all but shuttered their Mac development in favor of iOS, and eventually they got sold to Ngmoco. All of their Mac games (which used online activation DRM) were all completely useless soon after, and all of their customers were SOL. The solution? Buy a whole new copy of the game, at full price, from UbiSoft. That was what pretty much made me decide to never buy a game with DRM again, unless it was at a massive (90%+) discount, and even then, I would be apprehensive.
If you contrast that with today, most "contemporary" PC gamers feel that that won't happen to them. Steam is going to last forever until the end of time (and even if they did go away, they heard from their mother's cousin's brother that Saint Gabe would unlock all of their games on Steam), and even if the activation servers were all pulled offline, they all got their games via Steam keys from Humble Bundles for which they payed $0.01...so why would they care?