However, purchasing a video game has never been about purchasing a physical product, you've never actually owned the game, only a license to use it. The same goes for purchasing movies be it on VHS, Betamax, DVD, Blu-Ray or digitally.
That's not really true or accurate. For starters sometimes it very much is about purchasing a physical product, special or limited editions for example, buying things for the sake of completeness, just choosing to buy a physical copy of something so you can look at it on your shelf. I've both bought and kept media I cannot or can no longer use because I want to have that thing. Not everybody values these things, but plenty of people do, you cannot say it's 'never' been about purchasing a physical product.
Also, though in one respect you're right - buying a copy of a game/film/album doesn't give you title to the IP itself - the media very much is yours if you bought it legally. The license to use it within the scope of terms and conditions is implied by IP law and provided you don't break that law owning the media is functionally no different to 'owning the game/film/album' as the ability to use it is effectively irrevocable.
In principle, it's unfortunate that the industry is moving this way, but for me personally it's not really at the point where it's an issue. I'm old enough to have bought into, and watched die, various formats of physical media, and watched new proprietary formats come, and then get replaced. I've bought new (and in most cases still own) vinyl records, Betamax videos, audio cassettes, VHS videos, CD's, Laserdiscs, Digital-8, MiniDV, DVD's, Mini-Discs, Blu-Rays, Spectrum 128k games, C64 games, Megadrive games, PS games, PS2 games, PSP games, PS3 games, PS4 games and PS5 games... (I've also used and sold various other formats that I never bought into personally) ... basically, I accept that in the real world there is far more to having access to media that I've bought, in perpetuity, than simply owning the media.
While it probably is within my capacity to obtain the technology to use all of these formats again, there is a point where the expense and impracticality outweigh the benefits and those media items are effectively dead. In this era, it's the companies that make the decision on when that point comes... I accept that's worse than me deciding when I let something cease, but in practice I suspect for the majority of people it never really becomes an issue.