That guy was an idiot. While I'm opposed to the sort of system that can summarily deprive you of all your purchases (which is why I only buy hard copies of games), it's still childish to afterwards go and pester them about it. Nobody likes dickheads that waste people's time asking questions they already know the answers to. Sounds like a lousy loser and nothing else.

Software licenses are an exceedingly common thing in the business. Stereotypically you buy a copy of a game (or an audio CD or a movie), but you buy a license for a number of installations of a non-game software. Usually one if you are a homeuser, but sometimes more, like the three-packs of MS Office they sell these days. It doesn't then matter how you acquired the binary of the software as long as you have enough licenses. If they switched to licenses with the fully digital game distribution, it's nothing to be surprised about.

If there's something to be surprised about, it's that there are people who would use it yet still risk pirating knowing they could lose everything. But then again, foolishness is the most rapidly replenishing renewable natural resource.