This is an awful practice. Not only that recovering the password doesn't work but the fact that they actually deleted someones game that they paid for. If you buy a product, it should be yours permanently, or until it breaks. A digital product can't break, as long as you have an OS that can run it, in other words: the product should be yours permanently.
This does not make me like the idea of needing to be online to play a single player game that you bought any more, not at all.
Imagine you bought a bike, then didn't use it for x amount of time, then next thing you know the store you bought it from suddenly shows up to reclaim it, because "you haven't used it in a while"...
