DVD Region Encoding on Verge of Collapse?

Spudley writes "It seems like the infamous Region Encoding system used by DVD manufacturers to prevent us buying disks from overseas is about to collapse - due to widespread flaunting of the system. This article on the BBC doesn't go into much technical detail, but does include an interview with a company that manufactures DVD players ("You can find codes for more or less all brands of DVD player including ours") and some speculation on the future." It always seemed like an idea destined to fail.