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Digital Distribution is great and all but why is this suddenly a big issue? Is it because the next Xbox has no choice but to use DD thanks to the BluRay consortium's primary stakeholder-Sony? Could be possible that Sony planned to use BD not only as another source of income to offset high compeition electronics but also to block Microsoft forcing them to throw support behind digital distribution and fragment their fanbase.  

No Sony can't possibly be that forward thinking. I mean their business strategy can't be set decades in the future-I mean its not like the companies been around a long time.

http://www.sony.net/SonyInfo/CorporateInfo/History/history.html

Oh wait...