Yes, Sony can revoke a license. It is right in the terms of the license.

We own nothing but the right to access the game so long as the rights holder chooses to permit it. This means I could buy a game on Tuesday and the rights holder could render it unplayable on Wednesday with no recourse.

The "Buy" versus "License" question doesn't really resolve this. Sony is right in one sense that we all know we are licensing. What needs protection, probably requiring new or revised laws, is some sort of consumer right to get value out of a game license before the vendor renders it unplayable.