I really do respect your attempt to sell the software at a reasonable price and make everyone pay, but it's just too much of a hassle and will obviously be cracked anyway. And once it is cracked, the pirated version will provide a much better user experience, no worries about network connection or password or whatnot.
I think octanelive has a bright future, and if you play your cards right I bet you could make Octane pay-what-you-want and then charge yearly for octanelive. See Humble Indie Bundle 2 for a great example of this system in action.