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kowenicki said:
Make it digital only.

Solved.

Then those that argue for physical, physical, physical can follow the model, as demonstrated, of handing the disc over in person. The rest of us with digital content can move into the 21st century.

I don't see why it cant be digital only. Indeed, it should be digital only to force the issue. Yeah... I said it.

As Spencer said, they aren't just straight up implementing it for digital only because they feel that the people who already bought the physical copies without knowing digital copies would benefit from such features in the future would feel a bit cheated.

But honestly I'm sure they could figure out a way to give people the option to turn their physical copy into a digital one by having to do the 24 hour check if they want to do family sharing. This would move people over to digital altogether which would work out well for them. For those who don't want the family sharing and want to keep their physical copies without the online checks, they can do that as well. Everyone's happy and MS is swimming in cash.