To me, this signals a strong need for more secure bitcoin storage options, and since this is hacker news, perhaps some of us should get started on that :)
Or, we can dispense with having DRM on hardware we personally won. How about a protocol for providing a secure bitcoin wallet in the cloud? Basically, everyone runs their own open source mini-OS in their own obfuscated VM (1), which a smartphone app sets up for you and to which a smartphone app only acts as an interface. The wallet information is never on the smartphone, and the DRM is never on your own hardware.
Such an infrastructure would have many other uses, not just bitcoin.
(1) The security of each VM instance would be on an economic basis. Each one might be breakable within a week, say, but the system could be set up in a such a way that the week old information isn't work enough to motivate the effort.
You don't bootstrap a bank.
(Plus I did some basics with Bitcoin a few years ago and got pissed off at the protocol and moved onto less annoying things.)
Many (if not most) of the security vulnerabilites of the past years come from perfectly safe components assembled in an unsafe way.
Crypto-engineering is hard.
Blockchain.info can't touch my coins. But if there servers are compromised, a hacker could inject a tiny, tiny amount of JS and have my ID/password sent to... anywhere... and then the hacker could access my account. I'm curious to know how you'll get around that vulnerability.
I suppose someone could customize a small Linux live CD to boot, not touch the hard drives, load an encrypted wallet off a secure jump drive and encourage backups. It's fairly straightforward if you use a dm-crypted jumpdrive and, say for example, Tails.