As long as the used/borrowed copy still plays fine without any fees when the disc is in the tray, I don't see any difference to the console status quo.
Used/borrowed copies wouldn't get the play-without-the-disc feature (for free). But that doesn't even rate as a 'bummer'. That's just a logical, necessary architectural decision.
Otherwise a group of friends would just buy 1 copy of a game, pass it around installing it and then everyone would be able to play without the disc needing to be present. They could even sell the physical disc to Gamestop when they were done and still all be able to play the game.
Obviously, no publisher would sign up for that. So you get account-binding on install. Again, as long as having the disc exempts you from the fee, we're not talking about an experience any different from today. And it would still be more consumer-friendly than purely digital services like Google Play, Steam, iTunes, Origin, etc.