Why don't I have a custom title by now?!
The objectionable part to the change is this:
The other side of the argument.
Those are spiteful reactions from Microsoft. Neither of these things were needed.
Downloaded titles cannot be shared or resold. Also, similar to today, playing disc based games will require that the disc be in the tray.
The system they had in place for trading and sharing digital games? They didn't need to axe it. It was not a logical requirement in order to allow disc-based exchanges.
It was also perfectly possible to use something like "disc-based DRM if offline; network-based DRM if no disc in tray; only complain if both disc and connection are missing". (See? A solution that lets you keep being DRM-touting paranoid douchebags, but without being too annoying to the customer! How novel!)
No, Gizmodo. That wouldn't have been necessary.
The 24-hour check-in would have been necessary for the X1's store, which it is not for Steam, because the physical product (game discs) would still be available. This check-in, literally bytes of data exchanged, would confirm that the games installed were not gaming the system in a convoluted install-here-and-then-go-offline-and-I'll-go-home-and-check-in-and-go-offline-too-and-we'll-both-use-the-game methods.
First, it's a paranoid approach that makes the customers feel like they're presumed guilty. Secondly, if you have an online license transfer scheme going on, both accounts need to be online so removing the game from Alice's library happens at the same time it's added to Bob's. "But", you'll say, "licenses are tied to people not hardware! Alice could, like, buy one Xbox for game A, then another on which she trades it away and installs game B, and a third Xbox on which she trades game B and installs game C, and so on!" Well, then, have a cookie, Microsoft. You have indeed invented a mechanism that would require daily connections to be foiled. It's also a system that requires buying one $500-priced device in order to skimp on a $60-priced game.
TL;DR: yeah, on some point, the Xbox got worse. But it's not the complainers' fault; it's entirely Microsoft's because they insist on being a bunch of asshats; possibly out of spite.