Welcome to the digital age, luddites. Steam is working out just fine, there was the same backlash before but now we get great sales, redownload anytime you want, and play on multiple PCs. The benefits of steam far outweighs the cons and discs do not last forever, they get broken, lost, or rot which means you are SOL.
Disc based gaming and lending out to friends was a loophole waiting to be closed, because it's more fair that the devs get paid per person who plays the game. They just didn't have anyway of tracking that so it probably was built into the price of the game. This way it will probably be more fair instead of eventually making games to be hundreds of dollars to account for the leechers who don't contribute back anything even though they get to play the game for free or nearly free as a loaner or rental.