Well, the thing is that as consumers we have no advocacy, and are a group of borderline addicts. We keep buying the products and supporting business models that are not in our best interests.
The gaming industry gains a lot of benefits from digital distribution, but those benefits come at our expense.
Speaking entirely for myself, I only buy things digitally if they are very inexpensive. I also have no intention of getting Onlive, because I think it's ridiculous to pay someone for the right to buy things from them. Yes I understand the concept, how their servers work, and the idea of "cloud based gaming", but when your considering that games are apparently selling for the same amount as a physical copy could be provided, it's utterly ridiculous.
Now if Onlive was to establish a trust fund to support it's servers indefinatly, remove the subscription fees entirely, and finance itself entirely through taking a percentage of the game sales (say the portion that would have been spent on packaging and distribution) I might be more receptive to the idea.
Truthfully it's stuff like Onlive that makes me think gamers need consumer advocacy groups to watchdog the industry, and pressure politicials to pay more attention to the industry's cartel-like behavior and such.
Among other things I feel that you should retain permanant, eternal, undisputed access to anything you purchuse. If you don't have a physical copy, then I feel that a provider should have to take action to ensure continued access to that product no matter what. I think any digital "liscence based" sale should be backed by a trust fund that exists to ensure the content remains availible perpetually.