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What I think is most funny about this, is that say that there were no issues with bandwidth, and nobody cared if they actually had a physical copy.  Does anybody really think the Wii and PS2 would have issues competing?  They may not be as successful as they could have been had there not been these alternatives, but people still enjoy good entertainment for the right price.  I see this more as, we are trying to push HD graphics and media in our consoles and nobody is buying them because they don't see the cost/value of it.  As such, consoles = fail.  It's amazing what happens when people actually analyze the market (see Wii).