To me it's just like broadband only for XBL when it launched waaaaay back in November 2002. Broadband was NOT widespread throughout the world. I personally knew a lot of people still on dial-up then and for years after. But they new to move things forward, it was a necessary restriction and they took the bullets for it. In the end, we're better for it.
MS has a vision of where they see things going in the future, and that's all digital. They know the advantages, but most of us are so entrenched in how things are now that all we see is what they're taking AWAY from us. As time goes on, I'm confident they will continue to demonstrate the VALUE of their vision so we (hopefully) will focus less on the restrictions and more on the opportunities it opens up to us as gamers.
There will be those that plant their flag in the now and will argue until their gray about consumer rights, selfishly determined to let console gaming die in it's antiquity while smartphones and tablets (Steam!) thrive on the exact same DRM they say will ruin the world. That is their right. But MS (and, despite the PR play, eventually Sony too) want console gaming to survive and that will take some drastic steps into the future.
ALL digital is coming. And we'll be better for it.
