This isn't any different than the way Steam works right now...
I never said I agree with how Steam does it. In some ways, this is different from Steam (which is currently a primarily PC-based service) in a cultural way.
For the sake of argument let's only focus on activities done within the bounds of the law. In the console world part of the common culture is sharing, trading, and re-selling games. Not everyone does it but it's commonplace. (Sure, it happens with PC games (maybe not so much reselling) but my impression is that it's never been nearly as common as with consoles.) Moreover, console gaming has always been a place where two or more people can sit in front of the same machine to play together, something that PC games rarely do. Does this new model mean that when my friends come over to play Rock Band or Mario Kart they all have to ante up to the game publishers first?
It's more as if the console manufacturers and publishers are trying to change console gaming culture in the name of profit. This is certainly great for their bottom line in theory, but much of the console community is understandably upset.