Maybe it doesn't enforce them, but suppose the police scans my computer and finds lots of MP3s signed to Matt Maroon, would it really not matter? (Honestly I don't know - but if it doesn't matter, why encode the name to begin with?).
Honestly my argument was more semantics. It's not DRM. It's something else, and certainly less odious. All they're doing is creating a way to track illegal activity.
I wonder what the laws are on selling the track and then deleting it though. Is that as legal as selling a cd, or do you get sign some sort of legal agreement when you purchase the track? I've never purchased a single track online so I don't know much about that.