No, I bought lots of TV shows, movies and music digitaly and spent 90 bucks to back it up with an external hard drive. Lost it all, even the external hard drive broke. Lost $100s of dollars so I will never support digital downloads that require you to spend money to back up the files. I think others will not want to support something that is so easily destroyed. I will only support digitally distributed music.
See this, this right here confuses me.
Any distribution service worth their salt will allow you to re-download your purchases over and over again. I know because I have several times with both itunes and the Xbox live marketplace.
However, I have misplaced and ruined several game DVD's in my time, and was generally considered SOL unless I wanted to buy another copy of the game.
I also think that people are less and less concerned about 'actually having the product in my hand'. It's a silly notion to begin with, unless you somehow believe that the internet is going to implode on itself in a fiery mass of e-flame. Honestly, if for some reason I can never again connect to Xbox live to re-download my game, then I probably have bigger things to worry about.