The arguments used to make the First Sale Doctrine apply to books a hundred years ago are equally applicable to games and other software, and consumers should demand they're given the rights they deserve to use the copies of media they've paid for. You should be able to sell on a used video game once you've finished it, or lend it to a friend, just like you can with a book or a DVD.
That said, the title's a little misleading. Libraries only lend each copy of a book to one person at a time (if it's a physical book, it's pretty obvious that it can only be in one place at once), and the ruling the headline refers to says that a copy of a retro game can only be lent out to one person at once, which is understandable, even if it's a massive pain when plenty of games don't have many working copies left in circulation.