Does DRM actually make a dent in piracy? My feeling is no since pirated disk images come with cracks for the DRM scheme du jour, and that that is why they're going to this crazy scheme. What makes them think that pirates aren't just going to bundle something that intercepts all the traffic that this thing sends out, and then reply with the appropriate response?
Why not accept that a certain percentage of users are never going to pay for software, and that they aren't potentially paying customers anyway? It would make life easier for your actual paying customers, and you should be trying to make them feel like kings. (I know you're not in charge of this/responsible for this, I'm just curious as to whether you have insight into why this is happening)