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This means you can't pass the game around to your friends or sell it afterwards, which completely ruins the purpose of physical media imo. I mostly play PC these days so this doesn't affect me, but it's a disappointing direction for console games. At least they could've used an empty disc that has proof of ownership.
EDIT: Bethesda has confirmed that only the PC version won't include a disc. Physical versions of Xbox will include a disc. Whew.
i find developers/publishers are most likely to sacrifice your comfort first and foremost, and many of the games ive pirated have run worse for me or my friends when run legally. but i must admit i enjoyed the process of tinkering with windows on my steam deck, and the piracy workflow for steamOS is seamful.