1) Always on gaming reduces drastically the number of people playing illegally, which gives more money to the creatives who made the game. I don't go to networking parties where everyone has a CD-Rom with some game, they just buy a cheap game on Steam and we go to town.
Eh? Since when does DRM effectively prevent piracy? Even the Assassin's Creed DRM got hacked in short order. The pirates can play offline but legitimate customers can't.
I suppose you could argue that the average citizen doesn't have the technical skill to download a torrent, but it's not that difficult. It's wrong, of course, but not difficult.
2) Always on means constant patching, which means fewer bugs.
Steam allows constant patching and has an offline mode that allows users to play nearly all of their games offline. I've often set Steam to offline before leaving for a destination I know won't have an Internet connection and I'm still able to play my Steam games when I get there.
Steam also has the added bonus of
selling games for crazy cheap twice a year (July 4 sale, Christmas/New Year sale).
3) If there was a market demand for offline games, they would make them. The fact that always on is becoming ubiquitious means that the majority disagrees with you.
Well, I could say a few things about majority opinion, but none of them would be polite and some of which would likely derail the thread into a discussion on politics, so I'll refrain.
As for a market for offline games: I'm guessing Portal 2 sold plenty of copies and doesn't require a constant Internet connection to play the single-player campaign.
4) I play Zerg in SC2 and thing they are by far the most fun.
Then you're either far more skilled than me or a masochist. (It is entirely possible that it's the former rather than the latter; I'm pretty terrible at SC2.) In my experience, Zerg is, by far, the least forgiving of any race to play in SC2. Protoss are called easy mode for a reason.
Just for the record: I don't expect to change anyone's mind concerning DRM. People are free to spend their money however they wish (as long as they don't break the law, of course). I don't expect always-on DRM to go anywhere because gamers, as a general rule, have no self-control and will tolerate whatever abuse major publishers dish out. I sincerely doubt that will change any time soon.