If you're concerned about content protection, the inevitability of hardware-assisted content protection as hardware security improves is a valid concern.
But since TZ is (a) a technology with more non-DRM uses than DRM uses and (b) a fundamental part of the overall ARM architecture, not extending it to other ARM IP blocks would have been an odd choice. That's all I'm saying.
So if I want to buy a legal download, I'll have all sorts of hassle along the lines of "will it work on my hardware?", but if I get a pirate Torrent, then I know it'll work? If that's the scenario, I won't even consider going the legal route.
The notion of hardware DRM -- the movie industry controlling your device at a hardware level is frustrating enough to me.
ie you'd need to dump the keys from the hardware or find a flaw in the implementation or dump what the screen gets, basically. the last one always works, although its not very neat.
Meanwhile, what would really determine whether or not this is scary is adoption. Until a fair number of TVs, set top boxes, smartphones or what have you, actually start to carry the thing, there's nothing to worry about yet.
I suppose the thing that is new is ARM offering this kind of IP off the shelf (maybe).