One of the main resons for why Steve Jobs doesn't want to license fairplay to thirds parties is because the record labels demanded that in case of leak/crack the fairplay DRM be patched in a very short time. If apple had to deal with third parties it would be impossible (or at least very difficult) to keep the record label's deadlines. If there wasn't that I think they would license fairplay now to avoid all the legal troubles in Europe over the incompatible DRM.
One of the reasons DRM don't works is that "universal" DRM such as CSS and AACS always get compromised fairly fast. Proprietary DRM is more difficult to break but customers won't buy because of the lack of iteroperability.