I expect to get modded down, but what's so bad about not having to keep track of a silver disk to play a game? Steam has that model. It enables a huge amount of awesome things, such as being able to play the game anywhere, and publishers like it. Publishers end up getting more money, so they end up with a much better relationship with the service and can offer ridiculous sales (like Steam) because used sales aren't a "problem".
Am I the only one that very strongly hates that if I buy a new game from Gamestop and sell it back a month later, i'll get $10 back, but they'll gladly sell it to other people for $55. (woo, $5 cheaper). Gamestop provides absolutely no value to the gaming market with their used game money.
The big problem I had with their plan was the phone home being every day (why not every week or two?), the fact that they were going to half-way support some broken used game model, that would've been terrible(they should've just left it out completely). And lacking the ability to permanently play a game offline (like Steam)
In summary, their plan wasn't perfect, parts of it were really horrible, but at least it was advancement from this $60 for a 12 month old game on a piece of spinning aluminum(that if you lose, you might as well have never have bought it) crap we currently have.