To be honest, the only two pieces of information I knew related to this was "Always connected", and "Games install from disc". All my posts related to this really were just my opinions and thoughts on how the system could work.Everything, everything bkilian said starts to make sense now. He pieced the puzzle together at his own pace and it's more or less what we expected. My hats off to him for such honesty.
I've just thought of an awesome new web-based business model: Become an "authorized retailer", and then allow users to sell their discs directly to other users. Essentially become the private market. Take a small percentage to facilitate, and take care of the licensing issues for individuals. You could even incorporate the "for fee" developers by disclosing the fee to the selling user, and reduce their payment by that amount.