As I am saying on the main thread for geforce now, I do not think Nvidia has to comply with their requests. I think they comply with their requests because they do not want to injure partnerships/relationships with companies they have ties with.
I do not believe the publishers/devs have any actual legal authority to limit the use of players licensing in this manner. At the same time, it is unlikely the players can do anything about this legally because they are bound to the user agreement with nvidia. So in short, because Nvidia has no backbone and does not want to take the risk of a legal battle costing them money and potentially, even if they think it is unlikely to happen, losing, players are left with very little legal recourse.
I think at the end of the day it comes down to this argument. When I buy a game on steam I am buying the ability to install the game on a machine of my choice and stream it to another. And if you doubt that, please show me in the steam user agreement where that right is limited in any way when it comes to my own personal use. The fact that I am renting the machine? Irrelevant. My rights are laid bare. There is no restriction. They did not have the foresight to put it there. I am not sure they even have the legal right to, but they certainly did not do it. By buying the game, you have rights. I think there may be an argument somewhere, where they may even have standing to challenge in court but that is more complex than I am willing to think about this issue.