The "standard" required any compliant device to look for this bit, and if it found a "1," to *pretend that the video it was receiving was scrambled.* It would then have to *actually* scramble the video before saving it, using a DRM that would be licensed on terms that required that the video remain scrambled before it was output - either as a picture, or to another drive, or over a network.
8/
The thing is, all you would need to do to defeat the Broadcast Flag would be to build a TV tuner that *didn't* look for the 0 or 1 and *didn't* scramble the video before saving it. And building a DTV tuner just meant looking up the open, public standard for DTV (the ATSC standard), and following its instructions.
9/