According to PVRBlog, TiVo's new operating system update enables content protection flags on a per-show basis:
http://www.pvrblog.com/pvr/2005/09/tivo_72_os_adds.html
This apparently affects syndicated shows and the restrictions are not just limited to pay-per-view and video-on-demand. One example of a show that had a 7 day retention restriction was a two year old (2003) episode of "King of the Hill". The restriction also prevents copying to VCR and DVD. Check out the link above for screen shots.
Wired's question from last year seems pretty prescient now:
http://www.wired.com/wired/archive/12.11/view.html?pg=3
What if the higher-value content is just the beginning? This could be a Trojan horse.
That would be a violent blow to consumer flexibility. You could end up in a situation where different products by different manufacturers would have different rules. I don't think we would go along with it.
I imagine that he could still use a VCR to directly record the restricted shows off the antenna but that removes some of the usefulness of a DVR.
It's probable that this is an isolated incident where this guy's local Fox TV station set the flags wrong (he uses an antenna, not cable or satellite).
But even as a mistake it's a bad sign for the future IMHO.
I'll dump my DVR if restrictions start to hit the stuff that I watch. No point spending the $$ if I end up having to use my VCR to record shows directly. I'll prolly dump cable as well if that happens as cable simply does not pay if I can't hold on to shows long enough to watch them.