Ideally, the entire path from source to display is secure and inaccessible (even for the operating system), that is the core promise of DRM. Of course the device must render the content somehow, but DRM is specifically designed to ensure that this path can't be intercepted or exploited.
What happens outside of that path, before it's decrypted or after it's displayed, is beyond what DRM is meant to control.
That's just begging the question.
In order for the device to display the content on the screen, some part of the device has to have access to the plaintext. That part of the device is controlled by Microsoft -- it's their DRM system, they wrote that code and have the keys to update it -- so they inherently have access to it. Saying "that part is outside the scope of the DRM" is just defining your way around the fact that they can still do it.
Or to put it another way, if some court orders Microsoft to extract some DRM-protected content, what do you think happens?