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.
I prefer my PS5 and Switch over my PC because I work as a helpdesk tech for a living. I am so sick of looking at computers by the time the work day is done. Like, firing up a game on my PC feels like a goddamn chore after working on PCs for 8 hours at work.