You're trying to be too black and white because it'll vary by medium and region.
Songs are easy to download and increasingly people play music while moving around - hence huge interest in digital purchase which has been matched by huge interest in portable digital music players. Even in regions that have much poorer technical infrastructures the small download size makes it fairly feasible but of course even here the CD is alive and well in many regions where even a 1MB download is considered very large.
Games are split depending upon the size of the game and the region. Even in the UK with fairly fast broadband I'm not really keen on downloading 20GB of data unless I have too. Also, even with fairly big hard drives the numbers of games you can keep gets limited by storage vs disks on a shelf. However, for smaller titles downloads work great, particularly for consoles. However, of course in some regions digital is a no-no due to infrastructure and hence physical disks will be around for a long time yet. I think PC gamers probably lead console gamers in terms of using downloads - and not always legally!
Films are split by region depending upon infrastructure and viewing habits. For a quick rental of a basic film I'd consider a download but for a film I'm seriously interested in I have no interest. Digital quality still lags physical media, and if you're a realy film buff and want to own the film then Blu Ray is definately way more attractive at the moment. Also, again their are storage issues. If I want to build a big library of classics how much disk space would I need to hold say 200 plus films plus a lot of extras? A fair bit I'd imagine.
So, neither was right and neither was wrong, and both are chasing slightly different goals currently. MS want gamers into digital who don't mind dropping visual quality to rent a movie for a one time watch from Netflix, who want to stream music, etc. from a PC and who will mix digital/physical medium purchase of games.
Sony are after a similar demographic but also want the high end physical copy demographic as well, who will re-buy something like 2001 each time provided the resolution jump is always there and the new copy gets closer to watching the film in the cinema.
Really long term I'd imagine everything will go digital, but physical will be around for a long time yet, and both Sony/MS stand to get plenty of custom via both channels.
My view is, we'll know when the tipping point has arrived if something like CoD could open digital only and sell as much and be downloaded easily by that volume of owners. I'm not convinced we're remotely there yet, which is why for games/movies I'd argue the majority are still physical storage focused vs digital.
Try to be reasonable... its easier than you think...
