Steam on pc shows that gamers can be okay with not having physical media - as long as they trust the vendor that the thing they pay for actually means a persistent access to the game.
Unfortunately this move also gives much more power to the vendor. Once he decides to withdraw access to the player, the ownership of the paid-for thing becomes useless (until a lawsuit were to be filed and won).
Physical media without mandatory internet servers (like in pre-internet consoles) means true ownership - after buying a game, the vendor has no longer any control.
The key point to me is not directly the difference between physical disk or cloud download, but between truly offline versus online-required games (or goods in general).
If this is a literal license to kill for the police - who is the intended target? Does the RN plan to use it for their future coup, or is it meant for "regular" civic protesters that then retroactively become terrorists once shot?