Good theory and makes sense.

Consumer benefits are getting ease of use similar to digital titles and still have a hard back-up.

Retail benefits are that the games still flow primarily through the retail channel and going digital is actually an inconvenience as you have the download time which could be more of an issue than simply stopping by a store.

Publisher/Dev benefits are their perceived increase in sales as there is no used market. (However, I still think this will actually result in lowered long-term sales and increased per game costs to consumers)

Sounds like what the PC has been doing for awhile. Usually you install most of the files on your computer when you install the game. Basically, the computer just checks the disk drive to insure the game is inside the computer to load the game. There really isn't anything being loaded off the disc just checking to make sure you have the physical copy in the disk drive.

Might as well advicate for ROM keys.

This is what Origin basically does. You register your CD key. And the game is locked to your account. You can use the disc to install. And don't need origin or the disc anymore. Permanent real disc and digital option at the same time.

You mean the thing that practically every PC game does?

It's very simple: make the person enter a product code. That code is invalidated when you register the game, and revalidated if you deregister it. Alternatively, block online play for all subsequent users.