Sony is alienating a portion of the market which buys games for cheap, meaning used. Plus, years down the road, some kid is gonna have that new system and wanna play one of the games that first came out for the system. However, the game is no longer in production and the only copies available are on Ebay for triple the price. That, or game stores are gonna have to carry at least one copy of every new game that comes out on the system, yeesh that'll take up a lot of space.
Maybe I'm looking too far into this, but it's still pretty boneheaded. I can see Sony's game division going under in a couple years.
Also, pirates will find a way around it, they ALWAYS do.