Piracy is not theft. It is an infringement on another's right to distribute intellectual property.
This lawsuit is wasting a lot of time by not simply addressing the long-standing norm of buying a physical object which bundles the content, the license, and it many cases the copyright protection mechanisms.
Selling a used DVD is possible because the DVD contains the license — it is transferable and irrevocable by dint of its format.
Digital goods lack these distinct features but the language looks the same so people are now feeling the rug pull. Hence, the pushback against abandoning disc sales.