I don't know where you all reside, but in Western Illinois, we have data caps on our internet, and you have to pay a pretty penny to get to an internet tier where you have more than 15 mbps and a 250 GB cap before having additional charges. That cap isn't much when factoring in video streaming and digital game libraries, because when I lived in NC, Time Warner didn't have a data cap but let you view your usage, and in colder months we easily hit 500+.
I don't think most users are at the "all digital future" until at least the above issue is solved.
Another question - Regarding kids' expectations to have everything installed on the device - I think kids can and still do differentiate well enough on expectations between something like a phone and video game system. Also, when Christmas comes up, what's going to be exciting about giving your child a box and having it opened to show a download code, or just a note saying that "Mario NX" is already installed for them!". Kids are enamored with the physical, tangible in equal, but different ways.
I'm not excited about the lackluster internal memory size based on the Rumors, but if my Wii U is any indication, I wouldn't want to purchase full retail games digitally on my Nintendo console, anyway.