I've been reading through this and people seem to be focusing on how much more "convenient", "cheaper" and "faster" digital distribution is in comparrison to physical media, yet nobody has stopped to think of what it really means if physical media disappeared altogether.
Digital distribution is not a model for making things easier for you, it is, in fact, a way for companies to try to stamp out the pre-owned market. As more and more media becomes digitized there will be less and less media in your hands and therefore in your own control.
I can take a game or CD into a store or over to a friend's house and sell it to them for a reasonable price which I set and it is perfectly fine, if I try this with a digital download it is ILLEGAL and will end up costing me way more than what I originally paid for the damn thing in the first place.
If all media becomes 100% digital then good luck finding a bargain bin because there won't be any; the company will be setting the price you pay for your media. Picking up an entire album for pocket change will be a thing of the past, you'll instead have to deal with compressed bullshit that always has a digital whine in the background.
Every time you want to buy a movie you'll have to contend with prices that the company sets, you won't be able to borrow it from a friend's house, glance at your shelf when you feel like watching something or, indeed, trade it back to the for in-store credit.
This isn't something that companies are doing for you. Just like everything else they do this is about the bottom line. This is about them taking the media you paid for literally out of your hands and therefore completely removing your right to it.
Once this happens, what's to stop companies from shoving unskippable ads into their products in order force you to buy more of their crap? What's to stop them from making you pay to have the ads removed as part of a "Gold Membership" service?
What if they shoved DRM into everything? Movies, music, games, books, T.V. shows, etc. they'll pretty much have to since piracy will now be the ONLY way anyone could get the media they want at a price they can afford.
Imagine how irritating it would be if you had to maintain a constant internet connection to listen to the album you just bought, and how much more irritating it would be if for 30 seconds before you played it there was an ad for another album by another band you liked because the company had been tracking your purchases.