CSS was hacked because Xine's DVD player software stored the
decryption key in a unsafe way so that it could be easily retrieved. Older DVD-Audio disks used CSS, newer (after 1999) do not. I don't think there's any software to play such DVD-Audio media. CSS was very weak anyway, so it wasn't even necessary to have a real key. You can simply restore a working key by brute-force within a few seconds on every half-modern PC.
The next version of MS Windows i.e., Longhorn might make it (close to) impossible to hack software as it happened with the Xine DVD player (see
http://en.wikipedia.org/wiki/Fritz-chip). Also the new protection system CPPM uses a stronger algorithm and it's really mean as it's able to revoke hacked keys. This works by putting black lists on DVD-Audio disks released after they found out about the hacked key. However, *if* someone really hacks the whole system, he could easily create a disk that will blacklist *all* possible keys. Just consider what would happen if this hacker managed to modify a master disk before it's pressed.
There have been PC magazines with CD-ROMs that contained virii before.
Last but not least, if people are more than happy with "crappy" audio quality of an iPod or iRiver, why would they buy a DVD-Audio system? The electronic isn't the problem but
speakers that can actually reproduce something better than what you get from CD-Audio are quite expensive. An average audio system doesn't even come close to full CD-Audio quality
(especially at both ends of the audible spectrum). However, the success of iTunes and P2P indicates that audio-on-media is close to dead. SA-CD and DVD-Audio will certainly stay just vinyl but their main market will be audophiles and such.
See also
http://en.wikipedia.org/wiki/DVD-Audio