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I don't think that a fully downloadable system will come out until the retailers are given a hand in it. Also, memory needs to continue to get cheaper and smaller.
I think that they can create download stations at retail stores and then games could be put on a memory device.

Floor space is a big problem for Retail chains, it also is a problem for everyone in the game business. This may be a solution. Even big stores like Wally World have online counter-parts that allow you to download.

If memory is cheap and small- then your next system could contain a download device that would allow you to hold 2 or 3 games at a time. Take the game home and then dump it on to a harddrive. Or even still maybe they could just stock up on through away storage devices and put the games on them.

Anyway