Are Downloadable HD movies where it's at?

I've come to the conclusion that people really like their physical media...whether that's a HD DVD, Blu-Ray or DVD. Microsoft seems to be putting all of their eggs in one basket by poo-pooing Blu-ray on the Xbox 360 and going strictly with Xbox Live downloads. I've said all along, people still like to hold something in their hands, plus not everyone has a 15mb FIOS connection like I do. I have recently started converting my DVD's to mpeg4 files and stream them over my network to my 360 which is nice and convenient but still lacks the thing I liked best about laser discs and DVD's: Box Art.
Who doesn't like looking at the back of a DVD or Blu-ray and reading all the technical spec's? That was the best part of getting a DVD back in the day: reading those little boxes showing the video and audio spec's!

So the Chief Science office of THX isn't a big believer in Blu-ray and Bill gates says downloads are the way of the future but I want to know what happens to places like Best Buy and Circuit City? Half of the floor space of those places are DVD's!
Where are all those people going to work? Starbucks?