Its a bad thing for two reasons:
- It destroys any form of ownership people have over digital assets like games, movies, etc.
- No ownership destroys the second hand market. This hurts for a number of reasons:
- Preservation can now only be done illegally
- Access to gaming and other media becomes more expensive
- Large corporations get to decide what you can / cannot play. Removing games from storefronts and consoles is a lot easier than hunting down physical copies.
That being said I have no issue with digital only, we just need legislation that forces some form of "ownership" beyond just a license.