"This is terrible news to services such as GameStop, which deal in used games and consoles."
It's also terrible news for gamers, both for consumer rights and monetary reasons.
Or it would be, if it were confirmed, which it isn't yet.
Also, while I see the many advantages to a system like Steam, I'm just not personally willing to surrender control over whether or not I can install and play games I buy, and resell them if I wish. This is why I don't use Steam.
Any mechanism that prevents me from selling or buying used games, or prevents me from installing a game without checking to see if it's okay with a server somewhere, is something I will not participate in, be it console or PC. I really hope that consoles don't go down this path.