Tormentfan: I know it's a pain when someone doesn't add to the conversation and only pipes in to contradict.. however.. if I may be indulged..
You are quite right about the convenience aspect of digital downloads...however in ABSOLUTELY no way are they taking over.. either now or in the near future. Yes they are becoming more popular, but physical media is still by far the most common way to get games...by a hell of a big margin... a REALLY, REALLY, REALLY, hell of a big margin.
It'll be a longtime before dd's are considered an equal commodity in the eyes of the general public... People still like to hold what they buy, and that doesn't look as if it's going to change anytime soon.... absolutely not this console generation and certainly not even the next...
In general you are right, and I make that point often. I just read recently that CDs still make up almost 80% of music sales. I don't think streaming and such will ever replace physical media for movies either.
That said gaming seems to be on a different course, and PC gaming is way ahead. There are many games that are only released digitally already, and that group will only grow with time. Ubisoft recently stopped releasing their PC games in boxes in the US and it is likely only a matter of time for another publisher to do the same. For some reason, be it the demographics or simple lack of retailer interest, PC gaming is going all digital very fast.
It sucks because I like boxes a lot, and have a good collection, but at the same time there are benefits like all the great indie games coming out which would never have found a big publisher and shelf space.