I'm sure HDCP is in use now. Found quite a few people having problems with Blu-ray playback and HDCP, on this forum:
Blu-ray Forum - Blu-ray Community and Forums
Although, I think you can still play protected movies, at a lower resolution on non-HDCP equipment.
I decided to just get a USB box with S-Video capture. So, will at least be able to get some standard def movies of games.
I suspect PS3 games are using HDCP, as well.