I would love to say it's true, but not really. It's a bit about the hardware (DVD drive) and a bit about the disc itself. Original or not, not all discs are manufactured to the same quality. Most of the old timers here have had a game that gives out the DRE. Mine was Dead Or Alive 4. See, unlike PC DVDROM drives, the 360 drive does not read at 16X. It only reads up to 12X. The read speed has to match or exceed the burn speed for the DVD ROM drive to read correctly.

Back when 4X DVD ROM drives were still commonly used, if you burned media at higher speeds (8X or 16X), the probability of it reading the media is not very high. This issue does not necessarily affect everyone, but it is a known issue. That is why we are advised to burn media at lower speeds to allow better compatibility with DVD ROM drives. But how about DVD drives that only runs originals? I'd say this is more of a wear and tear issue. Those zillion hours logged in to Halo 3 can't be good for the drive...