For games I think it's great. I use Steam for most of my PC games and it means I have a backup everywhere I go:
- If I change PC, need to format my hard drive or just get a second PC, I just download Steam, sign in and I have all my games ready for download/install and saved games for those that use Steamworks.
- It's not tied to my hardware or some physical object that's suceptible to degradation, wear and tear.
- If I want to play a game at release I can download the game a week earlier and simply activate it on the day of release allowing me to get in game ASAP
Complaining about digital download is like someone complaining that their computer crashes and prefering hard paper copies when they lose their word document. You can save your document multiple times and have numerous backups on the net and on USB sticks. If you only had a hard copy and there was a fire, you'll lose that document forever.
And why would you cancel something that's free?








