Its the way they designed it so its difficult for people, having to ring up make new account add all friends again just to swap licenses, its easy for people like you who know about it, heck most of my friends wouldnt know what to do. It shouldnt have to be done, it should be simple and easy. I can understand they want to prevent piracy but its making it awkward for the 99% who dont pirate. Its not fair on those who dont, being treated like potential pirates.
They should have used similar model as the ipod, download onto as many xbox's with the account it was bought with. So content should be transferable and playable on any 360 just like the profile. Therefore it can be played online or offline.
I know apple drm aint foolproof but it will stop even more people pirating than if they didnt have it. Only the minority of itunes users know how to break the drm on itunes bought content, bet even less actually pirate as they have bought the song from their own money. What im saying is if they used less restrictive drm it would be more benefical to the end user. Maybe piracy would incresae a bit but it would stop all the faffing about swapping licenses.