I worked on Palladium from very early days in 2002 through renaming to NGSCB and the eventual shutdown/transition of the project to ship BitLocker in Vista

The team never saw DRM as being an interesting use case. Remember that the Darknet paper [1] was written by the Palladium architects and product manager. The team fully understood that DRM wasn't an effective use of a secure computing environment.

The scenarios that we were interested in were more like credential management, or being able to run remote sessions from a trusted space within an otherwise untrusted machine, etc.