@ OP: You do realize that by your logic, DVD's would be considered digital distribution as well?
(Not speaking of the OP, but internet people in general) I think people are clamoring for something different and new so much that they'll just latch on to any idea....no matter how impractical it would be to carry out.
I don't have as much of a problem with games that require online connectivity to function being distributed digitally, but movies and music? Not a chance! Give me my physical media! Especially with movies - I don't want low quality, super compressed downloads - and this is the supposed "HD" movies that I'm talking about.