It is, although I think it can be applied more broadly without corrupting Gabe's original point.
For example, I can think of numerous instances in which people get pushed to piracy by, ironically, anti-piracy DRM software (e.g. Denuvo), which causes such inconvenience and performance degradation to the end-user that even if you have legitimately purchased the game, you will have a much better experience playing a cracked, DRM-free version of the game.
That would be a case where--for example--GOG might put forth their DRM-free versions of games as an example of how to successfully counter the "service" problem.