Times--games--have changed a lot since our first forays into Hyrule or the Mushroom Kingdom, but as much as things have progressed, they've stayed the same as well. We had player's guides in the 80s, GameFAQs in the 90s, Youtube walkthroughs in the 00s, and I suppose on-screen aid in the 10s--same thing, different forms. The watch-the-game aspect does seem to defeat the purpose of gaming, but then again anyone who's sat down in front of a big-budget title in the last ten years knows that modern games are very much a cinematic experience anyhow.
I've seen a lot of uproar and rage over this across the web, but I personally don't really think it's worth getting so uppity over those who don't play games "the way they were meant to be played," drawing a line in the sand as to who "real" gamers are or what it takes to be one. Nor do I think it's going to kill the industry--it's simply moving in a new direction, just as it always has. That doesn't mean we'll never do things the old-fashioned way again; 2008 had seen platformers, run-and-guns, 2D fighters, and even text adventures right alongside the latest technological marvels. I highly doubt that the watch-a-game system is going to wholly replace games as we know them. For the old-school and hardcore, the tip system is said to be completely optional, and there's no reward for those who rely on the system.
Not to mention, we're going on a patent filing alone--let's wait to see something more fleshed out before we shake our heads ruefully (or quiver with anticipation, for that matter). As challenging as games can be, as cerebral as games can be, games are ultimately meant to be fun--and having successfully tapped into a market that approaches games not for an enriching deep experience but a carefree break from life, I think this is a way to ensure they still have that experience. Better yet, even ease them into the world of more conventional video gaming. Who can balk at that?
I should probably not write at 3AM.