So what does this mean going foreward? seems like they only have a few real choices:

A: Recall every BD and HD DVD disc and player and restart the whole thing. (will probably get cracked again so whats the point...)

B: Admit its been cracked and open up the technology, allow HD output over analog signals and allow people to backup their purchased movies.

C: Stick their heads in the sand and keep selling a format that restricts the usability to their paying customers but doesn't hinder piracy at all.

This is a really big deal, has the AACS come out with a statement about this at all? this sounds like it isn't fixable.