My download experience is limited to PSN (and that's what the article is covering anyway) so I'll admit some jadedness. But as to my complaints:
DRM: Aside from the recent Fingal Fight issue which was pretty bad, there is no legitimate way to save games you download to an external source. They do this out of fear that one copy of Final Fantasy 7 will make it's way across town. I've been told I have limited downloads (5) before I have to pay for it again. Maybe not exactly DRM, but it still is tight controls on what I can do with something I've paid for.
HD space: Sony's done all right recently, but its early HDs were laughingly inadaquate for gigabyte size installs plus DLC, video, MP3s, and games. Maybe Sony never expected that some of us are still collectors and want to amass a collection of games to play on out whim, not after an hour (at best) redownloading something because we needed to clean off some storage space.
Price: I recently saw a copy of that God of War game for PSP at Gamestop for $20. I saw the same thing online for $25 for download. So much for the idea of lowering prices by cutting middlemen and packaging and transportation. I've seen this elsewhere in digital media. Most music places give a discount for buying the whole CD worth of music rather than just a few songs, perhaps because for the last few CDs I bought, a buck a song wouldn't net me much savings, if not cost more ($14 CD for 13 songs, or $18 CD for 26 songs). That last one is because the price is universal and doesn't take into consideration if I'm downloading top ten material, a cult classic, a 30 minute Beethoven symphony, or the theme from jepordy. Even in my anime world I've seen 26 episode series for $2 an episode that I could buy physically for $37 plus $3 shipping (and it's come down in price since). Even Kindle books have been priced so at not to cut into physical media sales. While I've seen some (PS1 games) that are relitivly failry priced, I've seen some examples of online pricing that seem to ignore the physical world entirely.
Failures: Forgive my jadedness, but I've lost two computer hard drives (plus my mom's) plus a dead memory card for PS1 with all my RPGs on it, but I'm very protective of my digital data. I'm actually very concerned with my PS3 (after two bronken PS2s and a dying 3rd one)because I know they won't fix and return mine, but send me someone else's refurbished system. With my PC that's fine, I have hard backups of everything, but back to point 1 (DRM) I could find myself at my download limt and have to re-purchase something I already bought whereas with a physical disk, I wouldn't have to. And I haven't noticed much compression on PSN games.
And all this doesn't even get into bandwidth issues. Not everyone has the best high speed interenet (and PSN never gets good speed anyway). Plus many ISPs are moving towards bandwidth caps limiting how much I can get at any one time.
Digital media trades convience for control, and if I had more faith in Sony and other publishers, I'd take convience, but for now, I want to say I own it. I can delete and reinstall it as necessary without permission from an outside party. It's there if my system dies no matter what may happen online. It's there if my internet cuts out, and there for me to resell or loan to a friend.