Maybe the best step is to realize that it's just going to be broken, no matter how hard they try to make it secure.
I, for one, don't believe it will---at least not over the useful life of the format.
And what happens when someone gets a key out of a name brand player, like a Sony or Toshiba, and then uses that key to crack AACS. Will those keys be revoked, and will thousand's of players be made dead?
Now to be fair to you, this did happen once. Someone at a major university constructed a custom probe to sniff the Hypertransport bus on an X-box and extracted the private key. Seems Microsoft assumed nobody would be able to do that, and thus the key was transmitted "in the clear" over that bus. Indeed they assumed wrong. But it is interesting to note that other efforts to retrieve said keys were abandoned as impractical.
Still, granting that---people (and in this case, I mean DRM experts) learn their lessons. I don't believe this mistake is going to happen with AACS. But if it does, I think that yes, they will
revoke the keys that belong to that particular player. And the manufacturer of said player will have to foot the bill to have those players recalled. Recalls happen all the time for other reasons, though, so it really won't be that unfamiliar of a process.
Besides, if I understand AACS correctly, I think the hardware keys are distributed much more liberally---not just one per manufacturer, but one per machine or one per batch. Don't count me as certain on that point. But if I am right, even if a key for the most popular hardware model is retrieve, I don't think you're talking about a recall that affects ALL of them.
All this effort, all this money spent, on trying to stop something that you'll eventually be unable to stop.
The only thing that is wasted, in my view, is the bandwidth spent on wishful thinking that movie studios will give up on copy protection and DRM. It's not going to happen. With movie budgets regularly exceeding $100 million---and with studios increasing depending on DVD sales & rentals instead of cinema ticket sales to recoup that investment---you had better believe that they are going to err on the side of being heavy-handed.
think it is more likely that a relaxation on heavy-handed DRM will happen with music. Indeed some big-label studio, EMI I think, is experimenting wiith that. But individual music productions cost orders of magnitude less than individual movie productions, so the business models are different.
EDIT: I know it's a bit hypocritical of me to suggest this, given that I just entered a long post, but I kind of realized after the fact that it might be best to have this debate over in this thread here.