According to Boycott Adobe <boycottadobe.org>, it uses silly grade-school encryption. The "DMCA" is a terrible law, it's like a "crimethink" thing from Orwell. You can't sit down at a computer and write a program that opens an encryption system without committing a felony within the US.
I don't know about you, but I would have lost many files if it weren't for a program I found on the Internet to break open my own WordPerfect 5.1 files that I used a password on =)
Anyway, there are lots of alternatives for web graphics. I am using the GIMP for most of my Gridcosm panels these days. It's different from Photoshop but once you get used to the differences it's easy to switch back and forth.