i would fully support this, with a few important things to note:
1. i don't want the games to be linked to an account that can be banned, therefore not allowing me access to my games. for example, say i was being a twat on EA forums, and they ban my account. if all my games are from them, that is a HUGE chunk of my money just gone. i would prefer stores to be digital, so for example, if GAME sold the games, and they allowed me to download it through them. i think that would be fairer.
2. (consoles only) bigger hard drives. i'm sorry, but my 80gb ps3 is out of room, and that is my secondary gaming platform (my laptop being my main one. and my ps3 being out of room is only with a couple of actual game installs. give us 1TB systems, and i would fully embrace this change on consoles.
3. collectors editions are not strictly limited to digital distribution. now for this i mean have collectors editions as they are, but with a special code you enter to download the game, rather than a disc. i like my figurines, my collectibles, my artwork, and i'm not a huge fan of collectors edition DLC (not opposed to DLC in general, i just want better value for a collectors edition).
4. better internet connections. this isn't limited to game companies, but the internet needs to be faster to support complete digital distribution. quite frankly, we aren't there yet.
i don't think i missed anything, but i probably have. overall i love digital distributions, mainly for the prices, but also convenience. i lose things a lot. digital copies the worst thing that can happen, i got slow download speeds and i have to spend a day redownloading a game. with physical, i have to buy it again.