That is a huge part of the IP issue. Even Value has tried to argue that Steam is a subscription service and that you don't own Steam games but rather licenses to games on Steam. And it was for the exact reason you mentioned: a user was banned from Steam but wanted access to the hundreds of games he purchased.
That is the practical side of the problem. The logical side of the problem is the erosion problem. For example, SWTOR was planning on being retired and eventually offlined when the new SW title releases (thereby replacing it). Under SKG, the new title would effectively be forced to compete with the old despite the fact that the IP holder doesn't want that. They would have limited power over how their IP is being used. A group could take SWTOR, add content, and have people donate/pay for it despite the IP holder not wanting their IP used that way. The IP would in essence be fighting the IP. That is erosion. You have the rights but those rights become more limited.
Honestly, most people here are commenting with their feelings (not you, just in general) and anything that isn't fanatical level support for SKW is instantly attacked with absurd ideas how things "should work". There is legitimate reasons to support SKW and there is legitimate worries to how SKW is handling things.