I dare say if the media industry had lisened more closely to the potential critics, or if they at least realised that it isn't an effective way to combat piracy and too much of an expense, they might have done without it. But I guess it is a typical sort of knee-jerk reaction to early internet piracy.
(I mean, it's not too hard to see that DRM is useless. Anyone can rip a non-copy-protected CD or even analogue recording to MP3 and upload it, or even a copy-protected recording via an analogue connection.)
If perhaps the music industry, say, had seen the potential for digital music downloading much earlier, perhaps that might have meant piracy never quite became so big a deal and such a reaction would not have occurred, but it's a long shot.