While I was away, the broadcast flag was overturned. Furd, as usual, has a good round-up. Ernest also has a very comprehensive post with some background, commentary, and links.
There is of course speculation that Congress will grant the necessary authority to make the Broadcast flag go through. Copyfighter Donna points to Mike Goodwin's speculation that this won't actually happen. Mike says:
It turns out that the broadcast-flag scheme is so fundamentally brain-damaged, conceptually, that there's no way to implement it without the FCC's reaching out to regulate all sorts of consumer devices and information technology. And this factor is what links the jurisdictional argument that sank the regulation to the substantive argument against the flag -- the only way to make the regulation work at all is for the FCC to assume (or have Congress grant) broad jurisdiction that the Commission has never had before.
It seems to me this is parallel in some ways to the conceptual telecommunications/information services split. That is, we subject the transmission to regulation, but not that which is actually transmitted. Does cable's video-on-demand (VOD) service transform it into an information service?