Lets not get carried away. Steam sales are a whole different beast. PS + is pretty awesome, but Steam Sales can be insane. (Namely when it comes to 4pack games steams sales.)

Digital should ALWAYS be cheaper than retail.

Until that happens then NO.

NOT GOOD ENOUGH!

Unless you come up with a better 4-letter word for that kind of deal, i will continue to call them free

Contrary to your statement, this is how people use the word "free". If you stay at a hostel, they sometimes give you a "free" breakfast voucher. They don't say, "here's a voucher which is included in the initial price you paid. You'll continue receiving these vouchers as long as you stay here, but they're not free, because you paid for them".  They'll say "here's a free voucher". 

"Bu, bu, but you don't get to keep your games".  They also give you "free" internet/access to their wifi. When you leave, you can no longer use it. Yes, they call it "free". Same with countless other things. It's just the way the word is used. 

I agree with you, but I just wanna point out that in that regard steam ain't all that great either. A few years ago, I wanted to buy Might and Magic 6 and it was not cheaper at launch than amazon. Same recently with Naruto:Ultimate Ninja Storm 3 and Rome 2.  

You are 100%right 0.33 dollar per game is a rip off.

Compared to buying an older game for 10dollar and selling it with a loss of 50% when reselling it is almost like being robbed by sony when i pay few cents for a game that i would never ever touch again after finishing it.

rent

(though i don't share his point of view)

PS+ is amazing but really nothing is improving price wise as new releases are cheaper at retail. One reason I think that digital pricing is out of sync with our expectations is because of the need to sell hardware at retail. If the games were far cheaper on PSN fewer people would purchase fewer game retail boxes and just selling consoles would not be enough for retail. Sony and MS need to shift the hardware at retail which does also drive new game sales.

Example is blockbusters in the UK, it was ultimately killed by digital Netflix etc. It simply could not compete on price or convenience. If the digital game I buy can be re-sold and digital pricing becomes cheaper than at retail, buying games at retail would die overnight.

Imo digital is the future and the changes are already happening, PS+ is an example of this. It works because digital works, getting a voucher by e-mail or in the post to go get your games at retail would not really have worked. The cost in running PS+ in this case would have been higher for all. Digital made it possible, cheaper and more convenient. At the end of the day there really is no excuse that digital should be higher than retail.

Gaikai will be coming soon, this may change things up again?

Actually I work front desk at a hotel, we say that we have "Open wifi" and "Complimentary breakfast" included

I'm sure the publishers still have a say on the digital pricing, so it's not entirely Sony's fault. There are prices to pay for having the content up on digital services (XBL and PSN), so you're not going to always have price cuts from the bigger companies.