Remember that there's a 2 parter behind the used game market: The cheaper game, and the money you get from reselling YOUR used game. As a consumer who has played a game, you get to compete with the original seller with zero risk, versus their massive investments. It's quite profitable for everyone except the game creators. As far as the publishers are concerned, that used market is pure dead weight loss for them, market inefficiency at its absolute worst, driving prices up and discouraging risks and innovation. Getting rid of used games makes complete sense. The problem, and why used games are seen as so important, is because Microsofts business plan is to take a massive chunk of sales from used games for themselves, for zero effort on their part, still charge the same amount for games, and remove the recuperating effects that so many gamers experienced by reselling games.
The end result is in essence Microsoft increasing their margins massively while charging you more for the privilege of them making more money. If most of the new capital MS made went to driving prices down, in the form of perhaps a $45 or $50 price point, MS could have pocketed a smaller sum, ushered in a better digital age of gaming, and put their install base on steroids. But since they have shown that theres nothing in their new marketing vision to benefit gamers, everyone wants to stick with the status quo. If they traded the ability to sell used games for cheaper initial games, people may criticize them, but at least they would have to agree that MS had an argument. Right now, they are making a bigger cake, but still giving you a smaller piece: Might as well go to a different bakery, because you don't care if the cake is technically bigger.