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I don't really mind either way. To be honest 30 seconds after "hitting start" I forget entirely whether I'm playing a physical game or digital game. Box arts/manuals suck ass these days anyway. Nintendo could release games on vinyl records and I wouldn't care as long as it doesn't alienate developers. 

Digital only could have the advantage in giving developers an extra $10-$15 of profit per copy sold since the retailer cut and shipping/manufacturing costs are axed from the entire equation.

That said, Nintendo is a fairly kid-oriented company that operates like a toy company in many ways. I don't know if they'll be so gung ho on a digital only set up just yet.