A mix of retail and digital would be the best.
Retail is still needed as not everyone has broadband access and there are always those few titles where you want to own the box.
However I would like most if not all titles to be available as a digital purchase too. It's much more convenient to purchase games from your home and it gives access to titles hard to find at retail stores. Digital allows publishers to change their price a lot more easilly too, the way it is done on steam...( you dont have to worry about those retailers with huge shelves of the game that they bought at full price).
The drawback is that once this becomes available chains like gamestop will go down the drain but I couldn't care less about them anyway ( look what happened to bookstores when the e-book marketshare got to 10%...)
PS : it's amazing to see the numbers of people opposed to digital, especially with what's happening to the book market. Book readers are some of the most avid collectors and see how fast some of them are switching to all digital........( I have a collection of 1400 scifi-fantasy books and I went all digital 18 months ago and since then I'm reading 5 times as much as before and I don't miss my physical copies at all anymore...)








