Copyright to restrict competition

A recent remark from the Microsoft VP of the Windows Media division reveals copyright’s growth into an anti-competitive tool:

The intention is to reduce the number of licensors to a manageable level, to lock out “hobbyists” and other entities that Microsoft doesn’t want to have to trouble itself with.

Essentially, the licensing of their copyrighted Digital Rights Management is knowingly being used to keep developers from developing innovative uses based on their product.
Yes, this is perfectly within their rights under the law. But one has to wonder how this is “promoting progress for the useful arts.”
Old school Microsoft might have realized that these hobbyists were just the types that used to drive advancing the features of their product (even if was through buy-outs).