I think a much more disturbing rumor form this 720 business is this..
is there a thread for this yet?
This would be devestating to an entire sub-industry
Yes it would be devastating for an entire sub-industry. But they pay nothing to the developers or publishers or console manufacturers so I'm not sure they should be surprised. I expect every developer/publisher/console manufacturer is thinking of ways to either cash in on this sub industry or shut it down.
It might well be disturbing to those who depend on used games to supplement their purchase habits, but it's far from unexpected as publishers have been talking about it for years. Only recently have they started to really do anything, no reason not to expect that trend to continue into the next generation.