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Actually, the periodic-phone-home DRM is the main reason I consider the full sharing thing even remotely plausible. There is no way publishers would be okay with 10 consoles being even loopholeishly able to do funny business like install a game, go offline, and play indefinitely. But things that can effectively behave like discounts? Plausible to an extent; DRM can reduce prices.
What really wouldn't make sense, I think, is an always-online DRM system that gave no benefit to the player. There'd have to be some sort of compromise to make it attractive over something like the current digital download model, which already does a good job of preventing game sharing. The way the system was structured had to be there to counterbalance something new, otherwise there'd be no purpose for it.