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Ail said:
There are just too many advantages for digital for it not to take off.
Look at Steam, publishers can do daily deals and adjust the price based on sales
Well you can't do with the retailers because the big retailers that still has 50k copies of your games he bought at 50$ gets pretty pissed if you suddenly decide to drop the price to 30$.......

I was under the impression that the retailers (at least, larger retailers) are compensated by the publisher if there is an official price cut and also if any unsold copies remain, they can return them. However, I admit I'm going off of memory...if someone connected to the industry could confirm/refute my statement.