My take on this has changed, based on my recent experience. I'll try to sum this up quickly.
I was fine with the idea of an iLok. There were a number of plug-ins and sample libraries I wanted at the time that used the iLok, so I bought one and really haven't had any problems using it. I think the one thing that sort of irritated me was that I couldn't remove some the expired demo trials from the iLok. So when it ran out of slots for licenses, I went out and bought an iLok 2 a couple of months ago. Not happily, but that's the price of technology, I suppose. And it worked fine until . . .
Cubase 6 crashed. I was unfreezing an instance of Superior Drummer 2 and it crashed. And from that point onward my iLok stopped working, although all indications were there was nothing wrong with the hardware - surely some file somewhere just got corrupted. But none of the audio software that depended on the iLok worked at all, getting an initialization error whenever the plug-ins were scanned. Waves wouldn't work. Antares Auto-tune wouldn't work. Celemony's Melodyne wouldn't work. Softube's Acoustic Feedback wouldn't work, etc.
So at least 4-5 vendors software would not work. I contact Pace for tech support. First email from them basically says "don't bother asking us for help". I contact Waves for tech support. Despite our best attempts over the phone, I get nowhere. I recontact Pace - they send me an automatic response to send my iLok in for replacement. No support at all.
I could see where this was going, and finally decided all I could do was reformat my hard drive and re-install all of my music software all over again - this takes a couple of weeks with my schedule.
Needless to say, I hope that all of the vendors that currently use the iLok to switch to some other form of CP. One that is both effective for the vendor and reliable for the end-user.
The iLok is fine except when it isn't, and that's the real story.
And yes, I am looking forward to Waves 9 w/o an iLok and particularly the NLS plug-ins