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Yes it's the future, when everyone has fibre internet and no bandwidth caps. Digital prices will have to come down though, for now it's cheaper and more flexible to buy physical discs.

Playstation now will be like Netflix. You'll still have to buy new releases, but if you're content with 2+ year old games than it's fine.

Streaming will never replace consoles, especially not when VR becomes a hit. VR is extremely lag intolerant, some local processing will always be needed. Plus people like to argue the benefits of 60fps to reduce lag, add a remote server and (de)compression delay and you might as well play at 15fps.