The Xbox One was originally to have applied digital distribution restrictions to physically distributed media. That is the problem that people had with it.
Had Microsoft simply restricted their program to their digitally distributed games -- which they are likely to loop back on -- I doubt anyone would have taken issue with it.
... Except that's what a lot of Steam-distributed physical games do anyway. Quite a few games just come with a Steam Key and then you can install over the internet or use the disks as installation media into Steam.
digital distribution restrictions and benefits. That's what's annoying about the walkback Micosoft did. They would have had you being able to electronically lend your friends games you owned on physical media. But then when they canned that feature, they seem to have canned the entire family sharing facility.
Had Microsoft simply restricted their program to their digitally distributed games -- which they are likely to loop back on -- I doubt anyone would have taken issue with it.