Digital Download is just another step in the way we access games. The same process happened with Music and recently Video. Before you had to get physical CD's for music. But MP3 players paved the way and barely anyone buys CDs anymore. They all download it from iTunes. Same with videos. Albeit less common, but there are a ever-increasing number of people who stream movies. I myself get all my movies via Video-On-Demand from my Provider. I don't keep a physical record of the movies.
Since Gaming has followed these two industries somewhat similarly. It's very easy to say that yes, Digital Download will be the future for gaming. We're seeing a tiny bit of it now with what your original post said, Virtual Console/WiiWare, Playstation Store, and Xbox Live Marketplace all allow you to purchase entire games, demos, arcade games digitally.
It won't be long until entire games will be digitally downloaded, much like what the movie and music industry does now. So yes, 8th generation we'll be downloading whole games.
Why must JRPG female leads suck so bad?
