The problem with digital distribution of data is that infrastructure is not ready for mass downloads ( 4 to 20 GB for one game). You can do it but it will take you hours. Then what happens if your drive runs out of space. Then what.
Xbox/M$ need to conceed to the fact that physical media is here to stay. If the developers had more media space, then they can put larger textures in games hence making a better game.
Blu-Ray is doing great when compared to DVD’s history. It’s been adopted alot faster (google it, I saw it this morning on an article).
People and gamers, love to go to a store an play a game in minutes rather then hours. Plus some regions have restrictions on how much data people can download.
I agree that digital distribution is the future. I just will not happen for a while. Not until you can down load 5 GB in line 15 to 20 minutes. And you can get 1TB for at least $50. This will gamers the room to mimic their current library style. There are people that have dozens of games. They need to space.