Right on the nose.
Go back and look up all the articles written over the last 5 years about how Steam almost single handedly saved PC gaming. While it's not as easy to pirate on the consoles as it is on PC, it is really just a speed bump. And once you have a doctored console, why spend any money on legit games at all?
Anyway, it is too bad it came to this, but it was only a matter of time. People will cry, but the market pricing will correct itself to reflect the inability of people to steal games.
Again, look at PC gaming, which is currently the healthiest it has been in DECADES. The Steam model works, which is why we're getting it on consoles. If Microsoft/Sony give us the ability to resell our game licenses, all the better.