Hehe... yep, that's a misunderstanding.I (mis)interpreted your comment to mean you believe Linus should have restricted usage of Linux code in order to prevent DRM applications being developed with it.
The problem is that the new generation of DRM - the "Trusted Computing" - starts at the hardware level. Only if your system is "secure" (as in, digital content is secure from being copied because only certified secure software is running on the system), you can actually use digital content.
A strong opposition from the Linux camp was about the last straw that could have made a difference. Linus could have said "this technology is evil, Linux will not support it". Not that I think it would have helped much, since RedHat / SuSE could still have forked a "secure" Linux thanks to the GPL. But Linus said "no problem", so TCPA is all over us.
What's so bad about TCPA?
Well, today it might make sure your copy of Windows is legally yours.
Tomorrow it might make sure that you cannot create MP3's on your system that aren't encrypted. With DMCA et al tightly in place, "free" software must not decrypt those MP3's. If you install a "free" MP3 encrypter, all other TCPA-enabled software on your system might stop functioning.
The next day it might make sure that you cannot listen to MP3's on your system that aren't encrypted, and not before you have payed the RIAA for listening to your songs today. Having a "free" OS (or any OS that didn't come preinstalled on your hardware) installed for dual boot makes your TCPA-enabled OS stop functioning because there's "insecure" software on the system. (Bye bye OS development.)
...
You might claim that this won't happen, that the public outcry would be deafening. Wake up. It is happening already. The laws are being placed (DMCA, software patents), the technology is on the market, and all the big players - including Linus - are on the bandwaggon.
Will it become as bad as pictured above? Well, let's see, who is on the "pro TCPA" side? Microsoft, Intel, AMD, RIAA, MPAA, all major software vendors. They just don't tell. (Why should they?)
Who's on the "contra TCPA" side?
The end user, and most of them blissfully unaware of the topic.
It will come. That is the future.