In an interview with gamesindustry.biz, the CEO of Eidos US made an interesting point about digital distribution of today's games. The take home message was that in the US it would take as long as 9 hours to download titles available at retail. The infrastructure just isn't there to support those downloads.
On a related note, another blogger detailed her frustration with downloading movies via Xbox Live Marketplace. Instead of waiting six hours for the film to completely download before viewing, she decide to order it from her cable provider instead.
What would it take for you to make the leap to downloading movies and games to your system of choice? Would it be price, download speed, convenience? Would you miss having the packaging for a retail release?
I'm all set for downloading games from Xbox Live Arcade. My network connection would have to be reset constantly if I were to download movies or games that are gigabytes in size. I think when the day comes where I have download speeds on the order of gigabytes then I'll look at downloading as an alternative to retail.