Sorry, I'm a PC man through and through, but the used market = piracy line is complete bullshit and is where all the DRM bollocks originally came from.
If you buy a physical product, you have an absolute right to resell it. Yes, the publisher might want a cut of any further sales, but he ain't getting it. In the same way, the original producer of a CD/ DVD/ car/ TV/ stereo/ anything else you care to mention doesn't get money if you sell the item on.
Equating this with piracy is basically giving games publishers carte blanche to claim ownership of your purchase. This is where the limited activation brain wave came from- if they can control what you do with the game, they can destroy further sales of it and kill the second hand market. DRM is not for controlling piracy, it's for controlling you- pirates don't have to bother with it.
Oh, and a rental game bought by Blockbuster or whoever will cost a damn sight more than a retail game and will probably have a license whereby the publisher gets paid each time it gets taken out.
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