That's the stupidest idea I've ever heard.
As the article said, is returning your movie really so hard to do? With Netflix and the like, you don't even have to leave your house to return the damn movie. Simply throwing the DVD away doesn't add much convenience.
Let's look at it from Netflix's point of view. They have to keep up their supply of DVDs, since they can't get some support from returns. That would cost video rentals a great deal more money and it's just not worth it to them.
The article said that a DVD would have an expiration date. However, as you say, if it self destructs after one use, what's to stop me from burning a billion copies of it before watching it? Something like this will not help the piracy issue.
And Disney planning on selling these?! That's typical of them but obviously, that would drop sales 99.9999%. Who wants to buy a DVD that's only good for a month?