Yes, I do see many advantages to downloads. Especially for LAN parties. I would no longer need to bring my games, just my 360 because all the games would be on it 
There will always be some who are favorable of physical copies and want to resell the games, but there are also many who don't resell their games, or only resell a few.
For me, I only resell the single player games (RPGs for example) after I've played and beat them because I don't have the time anymore to replay them a lot. The games with good multiplayer (CoD, Halo, Gears, etc.) I keep and these are the types of games I would likely download.







