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Steam Now Warns Consumers That They're Buying a License, Not a Game During a Purchase
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Before Steam you bought a physical disc and it didn't matter that you technically only purchased a license, the disc was yours and nobody was coming to your house to take it away if the publisher started fighting with the developer or whatever.
True, with some modifications:
Some games had online activation built in. Some games would simply not install on a second or third machine without getting permission from the publisher.
Regular CDs have a lifespan of 5-10 years, shorter if not stored ideally. Almost all games had sophisticated mechanisms to prevent backups being taken.
Even if you could take a backup, record associations and publishers lobbied to make it illegal and punishable by severe fines in many countries.
Sony shipped fucking root kits on their CD that would hijack your PC and screw with backup software. EA shipped CDs with autoexexuting software that would actually delete CloneCD and other CD copying software and prevent new installes from working. My copy of Sims 2 came with that bullshit and OH MAN I was not happy about it.
I remember binning DDR2 RAM on a test bench back in the day and Windows deactivated itself after about a dozen times lol