In ten years I suspect you'll have nothing but digital distribution, so long as the original data is in place they can re-release the game for every next generation system. They don't make retrograde games for any previous system, and there is no guaranteeing you won't lose/damage or otherwise lose access to them. Furthermore, owning 6 or seven consoles is bound to be troublesome, particularly when you have one LCD television, but the data from those 30+ years of games on every console is out there waiting for you.
The idea behind it is so cost effective and yet simplistic that there is no reason not to carry it to its logical conclusion, just as Netflix is taking over the retail movie industry. Which leaves us with games...games everywhere.
Not all games get re-released though and I don't want re-releases on other consoles with no improvements. Sure I can buy certain xbox games for the 360 but I want it on the original Xbox. I still have my original Xbox. I don't play any Xbox games on my 360. That is why I kept my xbox. I didn't sell my PS1 when I bought my PS2 either. Having six consoles is no problem even in if you just own one HDTV provided you don't buy a cheap ass set. I have three HDMI, 2 component, 2 composite, 1 s-video, and a VGA on my HDTV. Throw in a surround sound receiver with video inputs and you can double-to tripple that. Hooking up six systems is a cakewalk.
I even kept my old SD flat screen TV just for playing old school systems like NES, SNES, and Genesis since they tend to look much better on the old tube sets than they do on a HDTV (provided you are playing on the original console).
I totally understand though, that some people just prefer the convenience of just having one or two devices and not having a bunch of boxes/cases taking up space. I'm not trying to say digital downloads only are bad, just that they are not for me. I like having a physical copy and all my old consoles. I'm just coming from more of a collector angle. It's actually fun for me to accumulate old electronics and media. Hell, I still even have a LD player and about 100 movies. I rarely watch them, but I just like to hold onto stuff for my own collection. I"m a bit of a geek in that regard.
And Netflix is great. I love it. But it still can't match the visual and audio quality of an actual Blu-ray disc or rip.
It's funny I should be talking about not liking digital downloads because Xbox Live is having a special right now. Renew for another 6 months for $40 and get 5 games for free. The five games are Halo Reach, Fable III, Kinect Sports, Toy Soldiers, and Gunstringers. I was going to renew for another year anyway, so I might as well get some free games out of it lol. I mean, they are free so I'm not about to not download them simply because I won't have a physical copy.