I agree, but that that is a problem with the distribution method, not the licencing model. The most reasonable answer to this would be that the game disc can be used to install on any console, but only allow that disc to confer a licence once.

I do not know how it will actually work, but I am actually excited to see what happens.

edit: actually, thinking about it now - I think this is where the always online requirement comes from. If i was implementing this feature, I would allow the console to install the game content and have it associated with a unique ID for that disc. But I would have to check with the servers to see if that specific disc ID was already used elsewhere. If this is correct, then I think the always-onlne "feature" could be relaxed in the case where there are no unchecked games installed. This is just pure speculation, however.