Biggest flaw with this idea is that the PS3 is not going to last anywhere near 10years. Next gen is starting in 2012 (2years from now) and by 2012 Bluray will not be anywhere near ready to be replaced.
PS4 will have a bluray player regardless if the system is more direct download or not.
Sony always tries to push out new media and most of the time it has failed. That risk combined with the fact that the PS3 wasn't anywhere near the overall success they thought it would be in 2006 ("We'll sell 6 million at $600", "People will get 2 jobs to buy one"), means Sony won't push the PS4 in the same manner.
The PS4 won't be like the PS3 in terms of cost and therefore won't try to push a new-very expensive tech into mainstream. It will be a far more moderate upgrade and simply continue the push to a all-in-one entertainment device with the then fully dominant media, bluray, as its centerpiece.
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