This means you can't pass the game around to your friends or sell it afterwards, which completely ruins the purpose of physical media imo. I mostly play PC these days so this doesn't affect me, but it's a disappointing direction for console games. At least they could've used an empty disc that has proof of ownership.
No great surprise, sadly--Bethesda has been on this road for a while. One of my angriest "gamer moments" was when I bought the Skyrim PC disc from the store and brought it to my PC and I was told I had to install Steam to play it. I wasn't a Steam-user at the time, and it felt very, very bad, especially since at that time (2013), the family home did not have high-speed Internet (they did not run cables to that neighborhood) and instead we shared a cellular modem plugged into a router a friend at an IP solutions start-up hooked us up with. I had just moved back to that house and was specifically trying to find something big I could do that would not require me to be online.
I am a huge proponent of digital media because, as an anime fan, I've seen firsthand that big, important properties like Evangelion can disappear from circulation for a decade at a time if something happens to the publisher, so I would rather own what I can than have to ask a company for permission to use something I've paid for. I am generally distraught that in order to deal with my other major beef with modern gaming (lack of backwards compatibility in consoles leading to having to repurchase the same shit over and over again) I have to use digital downloads and deal with DRM.