Here's where this otherwise brilliant paper gets on shaky ground.
"The format will probably incorporate digital rights management capability because the people who will be using it will desire that feature' - you mean the publishers will. The people using ti will prefer not to have that 'feature', but may put up with it if it is not too onerous.

This aspiration: "It should also be compatible with the current generation of digital playback devices, including CD players." is impossible. CD players play unencrypted, uncompressed digital audio. A drm'd format would require new players.