You're right. It doesn't effect the hardcore market at all.
it does effect the casual market, specifically ones where parents are buying games for their children on the cheap here and there. When that becomes more difficult and suddenly a simple treat is a 60 dollar en-devour every time, we'll see the consumption of games on a whole lower dramatically. I know quite a few families who do not buy new games for their children, they'll just pick up a few 10 or 20 dollars games here and there, THAT market, which is a big one, is libel to simply disappear.
But yeah, the hardcore market, as much as they're bitching, don't really matter in this equation. Shit, I bought Ni No Kuni digitally the other day because it was too hard to find in stores and I didn't wanna deal with the run around. However, that means that pretty much everything from this point, XBLA, X360, Xbox Indies, MUST be backwards compatible. There's no way that Microsoft or anyone else can get away with saying that you're simply buying a licence with a timer on it and when that timer expires, so does your game, and expect to not have a major public outcry. And unfortunately, that seems to be what Microsoft doesn't understand about this whole thing, if their handling of lost IP licensing is any indication.