This means you can't pass the game around to your friends or sell it afterwards, which completely ruins the purpose of physical media imo. I mostly play PC these days so this doesn't affect me, but it's a disappointing direction for console games. At least they could've used an empty disc that has proof of ownership.
EDIT: Bethesda has confirmed that only the PC version won't include a disc. Physical versions of Xbox will include a disc. Whew.
But just you then just buy a worthless piece of plastic nowadays, because the license key was already added to Steam, GoG or whatever?
I mean, sure, but the discussion isn't only about PCs, the question in the screenshot was about the series X. You can find pre-owned discs for consoles sold on gamestop, for example.