Yes, this is the advantage of the cloud over physical media.
If you only own the game on disc, then you are restricted to the disc. If you bought the game digitally, you can download it to any device. Sony's safeguard feature is that you will only be able to access and play that game while signed into your account on that PS4. Once you sign out and sign into another account you can no longer access it even though it resides on the machine. Keep in mind that you can only be signed into that account on a single machine at any given time.
Otherwise, you could simply walk over to a friend's house, sign into your account, download a game, and then your friend would have it.
In essence, they've shifted the licensing structure from machine to cloud account. In the past if you wanted to install software on multiple machines you had to pay a premium depending on how many machines, and that model still exists for almost all software in the business and education sectors, but now they enforce it through a commercial licensing subscription plan rather than digital signatures-- "product keys"-- tied to individual machine installations that wouldn't allow you to copy the software to other devices; this is why you can clone Windows to another hard drive, for example, but not to a new computer (they get you with the motherboard). For example, with Adobe, you will purchase a commercial plan in the most sensible bracket (ex. 10-50 machines), and now you can download and access online cloud services from that many different machines tied to the corporate account.
But digital signatures was never that effective, so the Cloud is great for software developers. If you don't protect everything behind a cloud-wall in 2018 your client will screw you. Count on it:
US Navy denies it pirated 558K copies of software, says contractor consented
Let the irony of that headline sink in...