In reply to:

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My point is that dongles are currently the best balance between those two contradictory requirements. They're breakable, but not without quite a bit of work in most cases. And, as was pointed out elsewhere, many times the dongle crackers do a sloppy job and cause the cracked program to be unstable.

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Hmm.. The crack for 3d Studio v.3 comes to mind:)The crack seemed to work for most people, until their files started getting corrupted:) Weeks of work, corrupted just because of a bad crack, and an innovative copyright protection programmer:)
-mark

...proud to have owned one of the first Mark I units