Steve Jobs of Apple Inc. just gave his thoughts on the DRM (digital rights management) restrictions of the downloaded music from iTunes on the iPod. Let's open up the DRM-restrictions on downloaded music.
Though I think Option 4 would be to incorporate an open standard that is open source and managed by the community. While the Record Labels might have a problem with this, and solutions might come in slower to breaches in security, at least no one company or small conglomerate of companies control the DRM development and implementation.
Steve, if you're reading this (haha, I think I'm the only person who reads my blog at this point) - how about opening the iTunes Store in South Africa too?