As one who BETA tested Settlers 7 and this new DRM scheme I can say it's for the birds.
Yes I had to have a constant internet connection to play - if my internet connection stuttered for a period of time the game would freeze in time and then resume once the connection was restored. This happened many times for unknown reasons causing me to either miss an upgrade, lose a battle, or lag behind in production. I have DSL and couldn't figure out why I had these stutters.
This same DRM is more than likely what is being used with SH5.
Other than that I didn't notice anything 'bad' about the type of DRM being used. I did have to log onto my Ubisoft account everytime before I could play the game which I found very disconcerting. Why do they need to know when I'm playing the game? Collecting demographic data from me and not paying me for it? I don't think so!! But out of principle I wouldn't buy a game that I always had to ask mommy and daddy if i could play or had to be under their watchful eye while I was playing it.
I'll wait until the game is properly 'patched' so that I don't have to deal with this annoyance.
Those with determination and desire can overcome any obstacle. Ubisoft should quit wasting $$ on silly DRM stuff and invest that money into the game's content and playability.
But I'm one that never backed down from a challenge so I say bring it on
Spite is a powerful motivator.