Yes, the fact that there are more options is clearly a sign that gaming as we know it is about to come to an end. Never mind that this doesn't affect people who want a physical copy in the slightest; the mere chance that this might possibly lead to a future without any physical media years and years from now is a horrible thing and must be fought against.
Life will go on when video games go digital only, so it's not worth getting that worked up over.
But this is all about a money grab. Putting more money into the developer and publishers hand by removing the middle man "retail". This is not about providing more options or the "digital copy" with retail purchase would be a no-brainer, but it is unlikely to happen as it's never happened in the digital realm. I think it's really hard to argue that the removal of physical media is a slippery slope as you seem to be implying.
1. A system was already released that was download only, PSPGo.
2. PSN/XBox Live/WiiWare already have a bunch of games that are not available in a physical form of any time.
3. We, as video game consumers, are constantly berated that we don't buy enough $60 games. Because we all know used game purchases and rentals are stealing trillions from developers and producers pockets. Digital is a lock down method to ensure multiple purchases by the same person.
I like convenience as much as anyone which is what digital offers, but it strips so many benefits that I find it hard to believe anyone would purchase digital given the choice of a physical media.
1. Price point is the same as physical media or higher when both are available. Simply doesn't make sense. They save money on the physical stuff and on the retail cut.
2. Can't take games with you to enjoy with friends. Sure, carrying a 3DS is probably not that big of a deal. But if I want to play Mega Man 9/10 with my friends? No problem. Either rebuy the game on their system, or lug my 20 pound PS3 over to their house, set it up with their system, enjoy, and then move the system back. Sure a Wii weighs less, but it's not any less of a pain, and I don't really want to get my systems scratched up.
Locked to sytstem is brutal. Have 3 kids? Buy 3 copies of the game. Want to play with friends? Carry around the system. System died and there's a new iteration of the system with exclusive games as a bonus? Buy the scratched refurb if you want to keep your content.
2A. Nintendo is still the worst digital distributer. Not that I'm a fan of any model, but the content needs to be tied to the account, not the system. Nothing like having to send a system back to Nintendo to get a refurb as the same cost as new because you don't want to lose hundreds of dollars worth of games.
3. Obviously I'll get chasticed like everyone else that tries to bring up this point. But I have two functioning NESs that I still play today, almost 30 years later. Now most people think that they won't care about these games in 30 years, that's fine whatever. The 3DS may still be functioning in 30 years because it's not a disc based system. But your Wii? Severly unlikely. And redownloading the game 30 years from now or servicing the sysetm will clearly not be an option.
I only buy digital media if it is one of two things:
1. Digital Only - nothing else you can really do here.
2. An amazing deal. WiiWare never seems to have any deals, but PSN has quite a few games that will go on sale for sub $5. That's kind of a sweet spot since to get a free game shipped is usually at least $3.
Have we really reached the time where carrying a few 1x1 inch DS games is a major inconvenience? I mean the system itself is pretty big and changing a disc takes about 5 seconds. Guess the benefits of digital download elude me. Especially when it's bring your own storage and that can cost a chunk of money too.