GREAT QUESTION! (although i would be using the PS3 version...), i was wondering this throughout the key note, no way am I getting an Apple TV when I have a much more fully capable machine already under my TV
No, the DRM is just that- Digital Rights Management. It's a form of copy protection. It will prevent you from converting it to another format.
I suppose you could play the rental on an iPod and hook the iPod up with a video output cable to a TV tuner on a PC and record it, but that's just a lot of trouble.