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Everyone saying that a USB stick would be more preferable, or that they already have all this stuff on other consoles/servers are completely missing the point.

Make it a USB stick that is hidden behind a TV and you miss the opportunity for someone to ask their friend "what is that and where do I get one?"

Make it a USB stick and you lose the ability for someone to display it in a collection, which is actually a point of purchase for some.

Rely solely on the market that is already buying your games and you are only ever selling to a dwindling base with a guaranteed reduction in profits year over year.

Not all games are made for people who play games. I know it is shocking, but it is also true.