Would you buy the next Xbox on a subscription model?
Microsoft has already started selling Xbox for $99 with a two year $14.99 Xbox Live Gold contract. If this was the only way to buy Xbox and because of always-on DRM a Live subscription would be required to play any game (or use the system in any way) would the "lower" price points be enough?
What if you didn't have to spend $59.99 per game: You don't physically own any of the games, you rent them from the cloud (some games are included with your LIVE membership, or add rental costs to your monthly fee).
You get the xbox hardware for $99, you pay a required base rate of $14.99 a month. Each game you rent costs $xx a month, but when you no longer want to play a game, you unsubscribe from it and stop paying for it.
Seems, to me, like the best of both worlds for an always-on DRM. Paying for hardware that won't always work is a tough pill to swallow, that's why the price needs to be subsidized by a required subscription, but not having to pay "full price" for games you don't actually own (or control) could convince a lot of people that always-on DRM is ok for "rented" games at cheap price points.