That's the problem. You are relinquishing control over your own device mad you are not allowed to see what is happening. When you use DRM you are giving power to a company to decide how you watch your media and if you can access certain content.
Sure, I agree...
But I'm saying that DRM as a concept is understandable... on a primitive basis at least... like, subscription based streaming is a good idea since nobody can have everything all the time... but the issue is that these DRM features are apparently too restrictive (right?)... so, my question essentially was "what exactly are the issues that DRM poses and what is the ideal way DRM should work?"
DRM shouldn't work, that's the problem. People should be in charge of there devices and those devices shouldn't try to undermine that control. When you use DRM, you are under control by the company or companies controlling your computer.
The alternative way is to just sell the videos. This is the case for DVDs. You also need to shift the liability from companies to individuals. If a individual illegally publishes a movie on the internet they should be fined.
Tl;dr - Subscription streaming platform that a bunch of youtubers can be watched on w/ no ads. Each member owns a % of the platform and gets a bigger $ cut per video