Dug your article. I've thrown down on similar discussions with DRM protection for other digital media sold by independent creators and it's the same issue. There's simply too much freeware and crack software that will blow through your Copy Protection.
As for 'keeping honest people, honest', that's only up to a point. Even the tech inhibited have friends like you who know how to do this stuff. Truthfully, at low volumes like you mentioned the ratio of piracy is negligible. It's not worth the effort for the guys selling content out the trunks of cars or out of a Piracy Sanctioned State to fool with your stuff. No matter what you do, there will be some piracy.
All you can do is as you said, 'make sure your product reflects a high-level of quality'. In doing so, you'll make your money up front before any potential pirate or 'home copy kid' starts cutting into your profits. When you start working in real volumes, then you'll let a big duplication house do their thing. But, eventually that stuff will be pirated too....