I think what you mean is that DRM is like the police, and
bad DRM is like a police state. The police are there to enforce what you can and cannot do. Do they stop 100% of people? No. Bad people can get away with bad things that good people can't, just like pirates can break pretty much any DRM system. But in a normally functioning society, good (normal) people don't really notice that the police are there. They understand the rules and they try to stay within the rules. The rules mainly prohibit things they wouldn't have done anyway, like cheating in a multiplayer game or distributing the game to hundreds of other people for free. That's not infringing their rights in any way, I'm sure you can agree. This is how Steam works.
However, bad DRM exists. You have to authenticate to their servers every time you play, you have to stay online all the time even in a single player game, if their server goes down you lose your games, they can take your games away from you whenever they want. The DRM is noticeable from the beginning because of the bureaucracy the lack of trust that comes with it. You're being punished just for the fact that you exist. You have to install rootkits or shut down/uninstall programs on your computer. There's no benefit to you other than the fact that, after they have been satisfied, they let you play the game. That DRM is like a police state. That DRM, however, does not describe all DRM. This DRM describes Sony's DRM, or SecuROM DRM, or Games for Windows Live.
See the difference (probably not)? I know I'm wasting my time, you've made it clear that your opinion won't be changed, but just know that not everyone agrees with you. Steam is DRM, and that's not a bad thing. You can have a local police department without existing in a police state.