@borkachev - Usb 2.0 is not nearly as fast as Firewire. This is why pro audio and movie people use Firewire for their media transfers. Try watching a movie streamed from a USB 2.0 drive and then from a FireWire drive. There's a significant difference. Now, theres USB 3.0 coming down the line, which will be faster than Firewire. But USB 2.0 vs Firewire is like having a race between a 3 legged donkey and a race horse. Also, you ask why? Well, lets say a game is 50 GB big. On today's network connections, that could still be a several hour download. Sure, you could do that if you want, but for those that don't want, they can go to the store and have it locally installed. Downloadable games were never out of the question, but people's main argument to that idea is that the connection speeds aren't nearly there yet to download a full sized game.
@epsilion - DVD is optical media, complete with all its flaws. A hard drive doesn't require a laser to transfer the media off of it, as it is already in the format that the computer can process. This is why hard drives are so much better than DVD drives. For example, it's why there are installs on bigger games like GTA4 - faster transfer speeds. The train of thought already exists in the development world, it is just waiting on a solution to finally rid itself of optical media due to the cheap cost of the actual media itself. An additiion of a high speed hard drive that is in a decent price range for manufacturing could match the costs of an internal HD and an optical drive, and it would eliminate manufacturing costs for the publisher/developer. It's just a matter of getting a fast drive with enough storage space at a reasonable price. IMO, it's more a matter of when than if.
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