My understanding of the revocation policy works like this.
A display has a secret key - actually a set of keys. The unknown in this is the granularity of the display keys - maybe someone can enlighten me if this is per physical device (ie like a MAC), per product, per product type or per manufacturer. Someone has actually stated that it is per chipset.
As part of the HDCP handshaking, a source device validates the display key. The source also checks the key against a list an internal list of revoked keys held in prom. This list can be updated on the fly by data within the MPEG data stream. In theory, the revocation list could be added to the data stream given to say the broadcaster, so in the example above, Sky would not have any control over their box being disabled with the display device. So if you watch a DVD, or receive a broadcast that has a revoked key, the source must add it to its revocation list.
So basically, the source, DVD player, STB etc will nolonger work with that display device. The display device will still work with other sources, unless that too had received a revocation device.
As I said above, the unknown is whether the source will stop working with only that physical display, or all displays of that model, or type or manufacturer or chipset.
-Ian