Sean Gilbride:

Consider this, the next "next" gen consoles (PS4 / Xbox 720) are, according Sony/MS not going to use physical media. Trust me, the days of "physical" media are limited.

Absolutely - digital distribution makes so much sense for both the publisher and consumer - it's going to be a huge deal, and I honestly look forward to the day when all my shelves aren't taken up with rows of boxes.  The only real question is what will happen if your drives implode and you're stuck.  Microsoft is having decent luck on this front with the xbox live arcade downloads.  They're attached to your account, and you can download them unlimited times after purchasing.  If everyone (looking at you here, Apple) adopts this practice, I think everyone wins.