First, let me say the whole used game thing essentially bugs me, no one else gets second value from their product, used cars, movies, or my old camping equipment, the only time a manufacturer sees value from me is during the initial purchase. Having said that, in this day and age there is a lot of after market support put into games, patching, DLC, and so forth, however this is not the consumers problem; perhaps proper QA should be conducted before releasing, and the bulk of DLC is purchase anyway.
I think the problem we are really facing is an adherence to an outdated model; games are still manufactured and distributed under much the same premise as they were in the Atari days, however technology has outpaced dramatically, the proof being the ease in which games are patched. Digital downloads will eventually solve this altogether, but it will be a while before that is a proven fact.
If you want to see what I believe represents the true wave of the future look no further than Blizzard. They aren't doing things perfect, but they are well on their way to it, they only problem they have is charging so much for their initial product, especially considering the monthly fee you also take on. Consider, however, how much free content goes in with every patch and you have a sustainable business model. IN Blizzards case I believe they should be offering their base software free, or, at most, charging 25% of what they currently do.
Here's how you fix it, sell your initial product for a much smaller fee, something in the XBox live marketplace fee, under 20 dollars, then offer patches and/or DLC (your choice of terminology) at a nominal fee. I would envision the bulk of the DLC to be created during the development cycle so all you're doing is recouping your costs, and ensuring that anyone who purchases the game secondhand has to pony up for it. Legitimate patching, such as bug fixes, would obviously be free. If people are willing, I could even see a small subscription fee, especially considering the way multiplayer content has taken over the market.
Is it perfect? No, but what is? Some publishers have already started doing this anyway, and like it or not, if you want to continue playing video games (which I know I do) you're going to have to pay for them somehow. If nothing else this would force more accountability into the system and give publishers a true measure of what people are looking for.
