His attitude is precisely why the video game industry is suffering: A refusal to learn. Instead of approaching the second hand video game market with some semblance of intellect, they're bitching and moaning about the problem and only wish to "stab it!" like some kind of South Park parody level of ignorant jackasses. If I willingly pay $60 + tax on your game, but then find it so offensively bad that I am willing to trade it in at a loss just to rid myself of it, that's really saying something, isn't it? Oh! Or how about this: I see your game in brand new shiny wrapping, but decide that the lower priced, banged up version without the manual is more appealing. If these devs/publishers can't get what that's saying, it's very simple. People that sell or trade in games at a loss might start to lose trust and are not as willing to pay full price for a game that isn't a "sure-thing" in their minds. Just out of personal experience, I sure as hell lost a lot of faith in games when out the door some are bugged to hell - sometimes unplayable - and the only fix is a patch (that may never come in less extreme cases). That said, I still own almost all of my newly purchased video games. I also can't remember the last time I've purchased a new game before Skyrim, but I will tell you that whatever one it was I wished I had bought used.
As for the environmental concern, a part of me (that is, 99%) thinks that was just a buffer between "So digital distribution" and "death to used games" so his later point doesn't seem like quite his priority. For the cost of video games and the ever-increasing loss of rights by consumers, even discounted, you're damn right I want a physical copy of my purchase. Even more so if my enjoyment would depend on the fickle whims of some company's servers and my internet connection.