Well even if companies go to digital distribution only people still will want a way to backup their games and display their game collections. So you will still need to burn a CD/DVD or put it on a memory card/stick. I would prefer the CD method as you can make covers for the game and put it on a shelf. But I do like to look at games in stores and their packaging so selling games in App Stores only online would ruin that for me. The only upside is that you get an instant download of the game and most of the time the stores don't have the game you want. This could kill the used game market as well. Something the industry has been wanting to do for years. But what if you download a game and it's crap. You can't just transfer your game and license to someone else. And if you handheld/cosole/computer crashes and you don't have backups can you get the games/apps back? I don't know I have mixed feelings about this.
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