What do you think about Ubisoft's controversial DRM applied to Assassin's Creed 2?

I bought Assasin’s Creed (the first), in preparation for the new one. Good game, had it’s limitations with some concepts, but overall enjoyable. So, thinking the next one would also be a good time – I bought that too.

They did a great job with spreading the news for the new version. Interesting trailers etc. But I wish I had heard of their DRM plan beforehand.

Here’s the scoop. You buy the game, download it – install… you can only play if you have an internet connection. If you buy the game at a game store, you may end up returning it if you don’t have one. (Or go over to your friends to.. play a game ???)
Once you’re in the game, your save-game and progress are synchronized with their servers in realtime. This means if something (anything) goes wrong at their end, you’re back at the beginning at best.

The server keeps re-authenticating you, in other words. You’re guilty until assumed innocent. You’re a pirate unless you have verified that you have paid the game – each and every time you access their server (or each time you start).

I bought the game yesterday, played for a while. Only to wake up today, looking to spend a couple of fun hours before my busy day to discover that their servers are having problems. This is not a multi-player game, yes, this is a single-player game with content on your hard drive….

Not even top of the line commercial applications apply this kind of a fascist paradigm. Needless to say, got a refund – and regardless of how good this game is. It’s not the only game, or the only developer. Ubisoft is dead for me.

Do you think it’s ok to apply this for a game?
Do you think it’s ok to apply this for any digital product or service?

What alternatives can you come up with for piracy that are not outright insulting and disruptive to the service/produce offered itself?