steam handles it far, far worse
Don't trust steam lol ESPECIALLY their servers...ewwwww
I was of similar opinion at first, but I've actually changed my opinion -- especially since I discovered that they've promised that, should their servers go down (in some permanent fashion), they will release tools to allow us to play the games we purchased even after that.
Edit: Which is to say, the system works, it works well, and its only real flaw is the possibility of loosing your internet connection.