My Situation:
I purchased FFXIV originally back in the 1.0 days, a collector's edition from the failed version. Since the relaunch, I had used the standard Windows Client. Once it was released on Steam, I
paid for the new client to have my distribution centralized while giving the registration code to a friend for them to try it (as there was no announcement or plan to restrict and the difficulty surrounding buying expansions was not known) Fast forward ~5 years and now I'm restricted from using a client I paid for. The downside too is that I can't repurchase a license on Steam to get a new key even if there was a way to register it. Put simply, this is a terrible decision that has caused major troubles. I've been promoting this game via Steam for years, it is featured as a "favorite", I share screenshots, people see me playing it which results in questions being thrown my way fairly often.
The other problem, the problem that is unacceptable is the error that is given when when you attempt to log in. Misleading error messages are just as bad since now you have the Steam forums all sorts of confused with an untrue message. It isn't that people don't have a valid license to play or a subscription (this is false), it's that SE's new restriction states they don't have the right "version" of the client and doesn't tell people how to resolve it. This is terrible from a customer angle. You cannot throw up an error that has has a known resolution and not give the customer the path to that resolution. Especially when you have ALL the space in the world to describe what's happening.
What fraud does this prevent? Having people buying the game for regions that have a cheaper currency? You already lock keys down by region, and this isn't the console platform.