It is crippling usability in several ways:
1. DRM is usually not portable (or not ported at least). I.e. most probably it's tied to certain devices / operating systems / applications and etc. For the end user it translates to "you can't watch it on the device / operating system / application of your choice".
2. DRM prevents backups. If the service goes bust or you lose connectivity - you have no access to your data.
3. DRM poses a security / privacy threat. Being transparent doesn't make it any better - it only makes it worse (think of a hidden camera).
All those are clearly examples of degraded usability no matter how "transparent" some DRM is.