I think what he was trying to say is that games like Warcraft 3 and Starcraft no longer require CDs to be in the drive to play. They removed the CD check some time in the last couple of years, so now it's just install and go.
In my experience of playing Warcraft 3 over B.Net and LAN, the way it works is, if you want to play a LAN game, no CD-key check is done. Therefore you can take 1 set of WC3 discs to a LAN party and everyone can play.
However, when playing online, a hash of your CD key is sent upon connection. If someone with that CD key is already connected, it will not let you connect. I believe the way Blizzard detects shared or widely leaked CD keys is when you have connections using 1 CD key from MANY different IP addresses ( not just 2-3. I've played WC3 from 2-3 different IP addresses (dorm room, friends place, college campus WiFi ) for over 2 years and never had so much as a warning.
In my -personal- experience, and what I hear from people I know personally whose stories I can verify, Blizzard ( NOT Activision-Blizzard ) has been very reasonable, and does not issue bans unless there are extreme circumstances. For this reason I continue to look forward to their products. Perhaps post-merger they will do things differently, but there is no data on which to base this theory.