See how many people boycott Xbox when they find out their games have no resale value, it'll be a bigger flop than the 3DO.
Look at this another way.
This is being driven by publishers, now Nintendo/Sony may decide they want nothing to do with it, so what follows then.....
Publishers say to Microsoft thanks for protecting our interests, have exclusivity on our product because we know we are getting paid for every single copy ever sold, suddenly the next GTA or Call Of Duty is only on Nextbox.......that drives sales.
I personally think this may be an idea being tossed around at an early stage, even if true I think it will come with some sort of online activation system that will not be limited to one activation just like an expanded online pass now.