In Microsoft's proposed model, discs became essentially one-time-use (no selling or trading to others). The trade-off was that they would "let you" digitally share games or transfer your digital purchases to others "under a very strict set of circumstances" that were never fully ironed out.
In a lot of ways, it's pretty close to what the Switch 2 is doing with their virtual game card nonsense.
But even modern consoles, despite being online 99% of the time in most cases, realize that you have to have a longer grace period than one hour.