Another thought that ocurred to me reading this article is that the incentives of the people involved aren't exactly what they appear to be. People who make "pirate boxed" really don't want to develop some device that'll give people free satellite TV forever; they're much better off with things as they are now, where each time they get to keep selling news stuff.
Also, the satellite people's incentive isn't really to eliminate piracy. As long as pirating the system is more expensive than buying it, they're actually better off with lots of Canadians pirating the signals, since it increases the liklihood that Canada will end up allowing people to view the stuff legally. I presume both sides know this, and their policies reflect it. George