True, with some modifications:
Some games had online activation built in. Some games would simply not install on a second or third machine without getting permission from the publisher.
Regular CDs have a lifespan of 5-10 years, shorter if not stored ideally. Almost all games had sophisticated mechanisms to prevent backups being taken.
Even if you could take a backup, record associations and publishers lobbied to make it illegal and punishable by severe fines in many countries.
Sony shipped fucking root kits on their CD that would hijack your PC and screw with backup software. EA shipped CDs with autoexexuting software that would actually delete CloneCD and other CD copying software and prevent new installes from working. My copy of Sims 2 came with that bullshit and OH MAN I was not happy about it.
Yeah good ones allegedly last 200 years if stored correctly. Cheap ones are 5-10. 20 can be expected for quality CDs stored correctly.
But no matter the claimed quality, it’s a gamble. Our local library had a lot of 10-20 year old CDs that had developed microbubbles.
5 years is low range for CDs, but common enough that you should be taking backups for anything you keep longer.