As a developer I am very happy with the new download model. It basically cut piracy off in a single swoop, the downside is tht you sell your software for less, but you do make
More sales.
As a software user, I'm happy to not have to worry about losing my disks, or having a massive box to put somewhere... But I'm am at the mercy of the distribution platform... Steam and iTunes for me.
As a child I remember rushing to HMV to buy the latest Album by my favourite band and the whole ritual around experiencing new music, and as such I lament the loss of the "album", iTunes has killed the last vestige of music as an artform... It's nothing more than an entertainment commodity now.
I'm not sure how this new model will affect games, but be sure it have an effect :-/