The counter argument is that infinite access to the shared games is too good to be true (frankly, unlikely given all their other Draconian policies) and that the publishers would lose way more money than they currently do on used games.
Sure, if you make a game that can be raced through with no replay-ability, this system would allow people to take advantage of that.
Where this system cannot be abused is...
Games that are socially connected and cause people to want to play together.
Games that are quality and have lots of replay-ability and cause people to want to play for extended periods of time.
Imagine a "family" trying to share 1 copy of Skyrim.
That game can be played for hundreds of hours.
This plan would be great for trying your friend's copy of Skyrim, but other people are going to be playing during a time when you want to play and you're going to end up just buying the game digitally.
pretty sure the XB1 DRM allowed publishers to determine if you could sell and buy used games. the DRM standard they reverted to is what allows us to sell and buy used games.
Yeah it did. But Sony allowed that too.
But what publisher would actually do that? People would have protested.
And if they did do that, they would have had to appeal to consumers by offering better deals.