Actually, yes; that would work nicely.
Only problem is that (old argument, but still applies) not everyone has broadband DL capability.
For smaller games or add-ons, it's not much of an issue, but once you start making 6+GB downloads the standard, it means having to have far more adjustable storage options like a full blown PC.
While the packaging is nice, and it doesn't cut retailers out of the loop, if it's just a box with a slip of paper in it that says the equivalent of "good for one user game download" it is pretty pointless beyond giving retailers something physical to order and sell.
For the PC market, it would definitely apply, seeing as how virtually all PC games require full installs and virtually all gaming PCs are net connected anyway.
That's exactly what DL services like Steam are.












