I think I'm right in the middle but it usually depends on the game. Something like an RPG or RTS will come with maps or a huge manual that I'll need to reference. I've always prefered having a physical copy instead of a PDF or HTML file. If it's a shooter or a silly little indie game I can add on to Steam, I'm all about getting it digital so I can install it on other machines when I want a quick game.
I think it'll eventually replace boxed games the same way music is being redistributed now, dealing with computer pirates was something the music and film industries weren't ready for and their conversion to online content has suffered as a result. I don't think the same degree of piracy issues exist in the gaming industry since it's been an issue since the dial up days.
After being held back by a restrictive NDA, Cornuto is back and giving his straight, no chaser opinions on all things gaming related.