I wouldn't mind getting all my games from digital distribution. In fact most of my recent purchases have been digital and I kinda like that. However I don't get my consoles connected to the internet at this point so I prefer to get my console games physical for the time being. I will also choose physical if it's significantly cheaper. I recently got Valkyria Chronicles and Resonance of Fate for £22 including shipping which is a real bargain.
HOWEVER there's a big but here. I am sceptical when it comes to digital distribution as the only platform on consoles. On PC we have Steam, we have Origin, we have Amazon and probably hundreds of others. I know of several regional services around here that offers deals that can compete with Steam or Origin. On consoles there's no choice where to buy it. The only company to provide digital distribution on my PS3 is Sony, the only one to control the price for digital games is Sony. Same with my 3DS, my Wii, my Wii U, my 360. Digital distribution on consoles are controller by the company making the console. I know Nintendo let those who sell their game set the price, but I'm not sure if the others do.
However my point is that there's complete monopoly on who can provide the games. If physical copies are eliminated then Nintendo doesn't have to match the prices of GameStop or Amazon. They pick a price they want for the game and the consumers gets screwed over because they have no options.
In conclusion: I want my games digital, but I fear the day where that's the only form of distribution.