True, but I think many consumers are yet to be convinced about downloads. I don't think the problem is down to people wanting a physical copy as opposed to digital, but that many people don't yet have confidence in the digital system.
One thing I definitely don't like is that when you download digital software, you do not own a copy, rather you pay for a licence to use it. Fair enough, but with the PSN you get 5 copies before you need to pay again- and I have friends on their fifth PS3s. With a physical retail copy, you actually own something, and since you can use the disk as much as you want, theres no risk of losing what you have bought (well, except for actually losing it but you know what i mean
I personally would rather have a retail copy, but I do recognise the benefits of the digital medium. I just don't like that faults outside of my control could result in me losing what I paid for!