Ten pages of circular arguments about a topic that started over a century ago. I guess things never really change do they?
So, I'll try to explain the topic and recap as best as I can:
PREFACE: It's critical to know that it's the *information* that copyright protects; regardless of the medium (Digital, paper. Disc or book) and regardless of the type of information (video, audio, story, etc).
This isn't interpretive or debatable; it's a hard legal fact. Arguing against it is pointless.
We do have exceptions for this ala "Fair Use", but those remain as VERY SPECIFIC forms of exception and are in no way relevant to this topic.
Copyright and First Sale Doctrine are diametrically opposed to each other. Why?
Normal/Private Goods (Rival, Excludable) such as cars, blenders, baseballs, etc are physical, tangible objects that inevitably wear out as time goes on. (I use economic definitions for clarity here; because they follow the same general logic that copyright law follows).
Video games and books fall under the Natural Monopoly type (Non-Rival, Excludable): because the INFORMATION on that tangible medium is what's important; you were never being sold just the book or disc, but the information on that disc.
Historically, First Sale still applied to books because that information (at the time) was still limited to a tangible medium that was subjected to wear-and-tear. Today though, the cost of reproducing any work is negligible once it's converted into a digital format; which, even though it can indeed "wear and tear" is easily and cheaply transferred to another format or similar medium.
In fact, it's so simple that anyone with a computer can do it. So, the problem for the Publisher becomes two-fold: They can EASILY and CHEAPLY distribute their works, but so could anyone else. Before, customers were limited to buying books, which historically, were not feasible for your average person to copy in a timely or economical manner.
Additionally, the cost of printing books/records/etc limited the Publisher's market reach without the usage of retailers.
But now they don't need that for the majority of their target market. They can publish via the tubes and make far more money per unit at the same price.
And because of this, we are faced with two new unique problems:
1) "Piracy" (simple copyright violation really. This problem is much older than the gaming industry; it's just evolved in its size and scale)
2) "Arbitrage" (the Gamestop model, and the only point that has any actual controversy, seeing how Piracy is a blatant crime)
Keep in mind that this does not apply only to video games: It applies to anything where the intangible DATA is the actual product. Movies, music, books and works of art* all fall under the same exact product type and are thus subject to the same logic under copyright law (with their own legal nuances, but the principle is still the same).
So the point of controversy lies in this: Do we suspend the First Sale Doctrine so that the publisher can FINALLY get paid for each copy of their product sold? Or do we retain it as a way of keeping those older products on the market for longer?
This is really just Publisher vs Consumer, and economic law at work. Retailers like Gamestop ideally wouldn't be necessary; they're a "necessary evil" middleman who distributes goods and takes a cut. Of course, Gamestop has magnified the problem tenfold by mass-organizing and then mass-exploiting arbitrage.
Honestly, this wouldn't have even been an economic problem if video game lifespans weren't so bloody short in retail.
*Yes, art. Many artists reproduce their works for profit. Others limit the number of works to inflate their value, but the artist NEVER lost the right to copy their original work even if they choose not to use it. And yes, it's illegal to make replicas of non-historic works without the artist's consent.