This is how most digital media works. You're not buying the media, you're buying a license for the media. Unfortunately, usually there's a clause in the EULA about how the license can be revoked at any time.
Only on PC. And pc games don't really have physical releases. On console this isn't a thing unless the game requires an online server because it's a multiplayer game
(Within the limits of IP laws. In some countries, making a personal backup of a DVD is an illegal act. Breaking DRM to do so may be a separate illegal act, again depending on jurisdiction. Neither is immoral of course, but that doesn't stop lawmakers and judges from kissing the slimy boots of corporate lobbyists.)