People often buy slightly defective products when they're competitive in other features - that doesn't change the fact that any game would be a higher quality, more desireable product if the DRM was removed.
The "defective by design" refers to features unwanted by customer, but intentionally designed by manufacturer.
Examples in the physical world are specific short-lived parts in consumer appliances to reduce their longevity and increase sales - as it's better for manufacturer if a washing machine lasts 5 years but not 10; or new printers being sold with half-full cartridges to facilitate sales of replacements. Quite useful to the producer, but nonetheless despiceable.
The "defective by design" refers to features unwanted by customer, but intentionally designed by manufacturer.
Examples in the physical world are specific short-lived parts in consumer appliances to reduce their longevity and increase sales - as it's better for manufacturer if a washing machine lasts 5 years but not 10; or new printers being sold with half-full cartridges to facilitate sales of replacements. Quite useful to the producer, but nonetheless despiceable.