It would have meant that people would have more viable options, since games would not be forced to rely on DLC/microtransactions to compensate for used game sales. With no used games, "normal" (non-microtrans) games would be made more often.
Games are not forced to do that now. Microtransactions, DLC and Season Passes are already there to compensate for used sales, which no one has even proven that it is absolutely damaging to publishers in the first place like they like to claim. It is just the new boogeyman and as far as we can tell, hasn't had a big enough impact on ANY studio. Studio closures last gen had been tied to many other problems before used sales even come into play, mainly, poor management.
This is excessive, and has nothing to do with that.
What I see on digital platforms like Steam, and Origin and Uplay right now (where there is no used market) is the same shit. Pre-order DLC, season passes, random loot boxes,etc. What I see, is EA had a chance with Origin to prove that with digital downloads (where they don't give a big cut to retailers and people can't resell) they would be more willing to cut down on those practices and the opposite has happened.
The idea that publishers dictate what the market is willing to spend money on is the naive view.
Of course there are people who are willing to spend that, that is why publishers are treating their customers like marks, or potential whales, or gambling addicts instead of regular gamers. And that is why it naive to think more games would arise that wouldn't need it. There is absolutely a market for it, and they are exploiting it. That doesn't mean it is
fine. That is the real reason this shit succeeds, because there are very real psychological reasons why people can be often pushed to spend that kind of money. In that sense, they dictate it, because they know they can get away with it. That is the reason why things like the FIFA Ultimate Team is there, because developers realized there were some people willing to spend $5k a month on that, so they are going to give them more avenues to keep doing it, regardless if the real value is there for everyone else.
If you could sell used games on Steam/XBLA/PSN, those kinds of games would not survive.
You can't prove that, so it is all conjecture. Let me counter it with as much proof as you provide: I am sure they would survive. There.