I know a lot of people don't like the idea of digital distribution, but it would allow companies to continue offering games well past the point where they stop now.
In theory that's true but I think we'll encounter a fair bit of bullshit false scarcity. A "Limited Edition" is like a little threat that can work pretty well. Maybe you were debating whether to buy something or not. The second they indicate that it's available for a limited time you suddenly have this weird pressure to make a decision. If you don't buy it NOW you might NEVER be able to get it! That's clever manipulative marketing to get fence-sitters on board. Disney does it every single time with their video releases. I think even in a download-only model we'll get limited time releases and such just to get us to buy things we maybe don't really want in a panic.
Atlus' whole business strategy seems to rely on their customers' knowledge that Atlus games have very limited distribution runs so you better get it ASAP! If the game was as readily available it would remove the aura. Part of the appeal is in the obscurity.
Metroid Prime Trilogy's limited release was PERFECT. How many of you who already owned ALL THREE GAMES, which were all playable on your Wii because of the Gamecube backwards compatibility, bought this as well? The new control schemes for the first two games is somewhat new content but I think a lot of the appeal was that this was a special collector's item. It came in this great tin and was only available for a limited time.
And that reminds me that not only is scarcity beneficial for creating interest but so are little extras like the tin case MP Trilogy came in. I figure that even in the future where digital distribution is the norm we'll still get the little collector's editions and such. Who says you even have to offer a game in digital format if you don't want to? Sorry, THIS title is of special prestige and will only be available in stores with the special reflective hologram cover and soundtrack.
Digital distribution will not be that easy consumer friendly service we want it to be for a long time. It will have its share of bullshit. Hell look at the VC. Any reason why every game Nintendo could put on there isn't on there? No, they want to space releases out or keep this one in the vaults so that remake can be made or whatever. We have the ideal service to sell old console games available RIGHT NOW and yet Square Enix isn't making Chrono Trigger available so they can sell the remake on the DS.