Those are some good points. But I have to saw we've slowly been worked to be okay with this new digital frontier. I too have found myself buying some digital games (mostly XLBA and PSN titles) and some DLC (Defense Grid and Bioshock 1 & 2) so i have to say we are somewhat comfortable with this digital offering. And even though we don't see price drops like we do with physical copies, we do see some discounts when games go on sale on XLBA and PSN, most of my titels I didn't buy at full price and I just waited for their speical "sales"
But when they push the evelope to make the consoles more like PC's is when I draw the line myself. If this is the future that console makers are hoping for then I'm giong to have to bow out and wait to see if this'll cause the next video game crash.