The history of SDMI vs. iTunes and AACS vs. Windows XP has taught me that DRM "requirements" are just the opening position in a negotiation. Apparently Mozilla doesn't have enough leverage to get rid of DRM completely but they have enough to water it down a bit.
Possibly, but they've already managed to get the W3C and several of the other big browser vendors to agree to meet those requirements, which gives them some pretty strong leverage.
