Yup. I think we all knew Steven was chock full of BS when he said they didn't include Blu-Ray due to the licensing issues. Instead he should have said that Apple is (once again) late to the party and trying to play catch up.
This is unlikely. At least some, if not all, video purchases from the iTS have HDCP. I think Steve's bigger issue with the Studios is that Blu-Ray discs aren't encrypted with Fair Play. The inclusion of HDCP compliance is probably a forward-thinking precaution.