Essentially, Microsoft will scan your computer for any songs purchased from the iTunes Music Store and make those songs available to you from URGE for free, and in higher-quality Windows Media Audio (WMA) format.
free or not, that does not sound like something i could care less about.
If you don't use iTunes or have an iPod it is irrelevant but for anyone who has bought music from iTunes and doens't want to buy an iPod it could be a killer feature.
Apple have recently come to blows in Europe (esp. with the French government) for the inability to interoperate MP3/WMA/iTune formats on all portable players - so much so that Apple was ready to withdraw the iTunes store from France until a compromise was reached. If MS do this it will give a huge incentive for anyone who wants to move away from an iPod to do so as they won't lose their investment in iTunes tracks in the process.
Personally I find the whole DRM saga (Apple, WMA and Audible its irrelevant) totally stupid! All of these formats can be burned to standard CDs so in what sense is the content protected? It doesn't take a genius to use iTunes or Windows Media Player to burn a disc and then rip it as MP3 (perfectly legal for personal use). If people are then going to distribute files illegally what is to stop them (not that I am suggesting any one should). So the illegal distribution continues unabated and again the only people who really suffer are the legitimate purchasers of DRMed music. It is just plain stupid!