PS1 uses CD
PS2 uses DVD
PS3 uses Blu-ray
PS4 uses ....most certainly a new disc format.
If by the near end of the PS3's 10yr plan and a new disc format arises, its most certain that Sony will have that in their next console. You can always guarantee that Sony will try to bring in the best because thats what they do.
Digital distribution can only be side-by-side a physical format at best. Until the world offers unlimited bandwith, extremely fast download, and continually larger HDD at a low cost, then digital distribution will never take over.
I have a 80gb PS3, say if I download MGS4 via PSN = used up 84% of my bandwith (I have a 60gb bandwith cap leaving me with 10gb of download left for the rest of the month) and that also means i cant download another big game til the next month, took up %63 of my PS3 HDD and means i cant fit at least 2 big games on my PS3, countless long hrs of inconsistant download time due to the fact that I might want to download videos on my computer etc.........but all of that was simply cut down significantly just by simply putting MGS4 on a single Blu-ray. Thank you Sony. =)