I wonder how long until an open source Diablo 3 private server is created, and this form of DRM is rendered near-useless.
What's important to Blizzard isn't that nobody ever breaks the security, but that they can delay that for long enough that people in the parts of the world that mostly pirated Warcraft III buy the game before anyone has working private servers.
The game itself will be made worse for everyone by this decision. Perhaps if it takes off as an esport we'll get to see BNet go down during tournaments like we have for SC2.
edit: This would also enable for LAN parties to play without anything more than a few cross-over Ethernet cables.