Some type of cards would be great. I miss them. They could do creative things with the physical media, too, like the gold NES Zelda Carts, etc. They could also be potentially faster, update-able and could hold save data too.
As far as the impact on Nintendo and NX goes, it's only positive. Some points:
-They could have one media for both a console and a handheld.
-They could have anti-piracy measures.
-Capacity could be increased as technology allows.
-The DS to 3DS increase in capacity of carts is 15X. It's not a stretch to say NX carts could affordably hold 125 gig.
-It was commented that even an extra $1 in media costs per unit would dissuade 3rd parties. This is not true at all. The savings of not having an optical drive could be very substantial for Nintendo. Some have stated that optical drives on bulk would only cost a few dollars. While this is true, it doesn't factor in the reduced size, weight, casing, power, shipping and storage costs of the overall console itself. The Wii U could be half the size without the optical drive. Smaller size = much lower overall costs of production, shipping and selling. All said, Nintendo could save at least $10 per hardware unit without the drive. Since an extremely good attach rate is 10 games per console per life, Nintendo could subsidize 3rd parties the additional $1 in production costs and still come out on top.
-The above point assumes 100% physical media sales. We know this is no longer the case. Even on hard drive-limited Nintendo systems, digital sale percentages are pushing 30%; more on some titles. In two years it's not a stretch to say sales could be 50%, reducing the impact of media costs greatly, and putting extra emphasis on reducing hardware expenses.
-As has been stated, the mass market has moved away from physical media. Before each migration virtually every industry had those stating they really want to have CDs, DVDs, etc in their hands. Games are no different. The tablet market has established a very clear standard that the typical consumer is used to buying software digitally.
-The idea that core gamers want their boxes more than casual audiences is unfounded. Core PC gamers are perhaps the most core gamers of all, and that market is now dominated by digital game sales.
All in all, I think it would be an impressive step forward if Nintendo was at the forefront of game media for a change and developed a system that was heavily focused on download and card-based game delivery. Blue Rays are old tech. A fantastic digital store and cool-looking card media would seem way more high-tech.
