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It's still a product though. Besides I believe DVDs can contain software data as well as video data. Many of the older game discs were probably DVDs of some kind.
I thought this too at first, but you could easily keep an outdated device offline to avoid the need to update it and keep it secure. Besides, compatibility layers exist (WINE, Proton, etc).
I don't know much about that game, but I think the guy said that that game was subscription rather than purchase, so I reckon that specific game probably made it sufficiently clear that you weren't buying it. For other games where providing users their own way to host a server is infeasible; they should do the same. ... or whatever they feasibly can do to keep them playable.
Then they should make that clear.
I do strongly agree with that. Sadly though, many people just don't know what they're getting into. By the time they do, they're already hooked on the series. It wouldn't be as bad if the terms were clearer.
Edit: Also, many people get into games as children.
Releasing closed source server binaries, or even just not being allowed to go after people who make their own server when no official one is available would be a step forward though.