I've been saying since day one of next gen's announcement that digital distro is not feasible for next gen. Yes, SOME people have crazy high internet speeds, but those people are in the distinct minority. I have a 20megs down, 8 up connection currently. Faster is available in my area, but the cost isn't worth it to me and I'm not living paycheck to paycheck, so I can damn sure tell you that it isn't worth it for most people who struggle just to pay regular bills even if it is available to them, not to mention all the people that live in areas where anything that fast isn't even an option.
Speeds are all over the map in the US, and in many other countries it's even worse because even if they have crazy fast speeds, those speeds often come hand in hand with a monthly cap, at which point it's either shut off, throttled drastically, or forced into extremely expensive overage charges. People in countries with caps will NOT be able to download 30-50gb per game.
Then there's the obvious problem of storage space. If console designers were so anxious to usher in a digital distro model, they would be giving the appropriate amount of space to make it doable. Cloud storage of game installs is NOT the solution (at least not yet) because the afore-mentioned bandwidth issues would drastically impact being able to access and play games from the cloud.
Until there's fiberoptic running to the majority of these console producers' customer base, there really is no point in trying to push digital. Sure they can offer it for the privileged few whose speeds and pocketbooks make it feasible, but for the rest of us physical media will still be the go-to for a long, long time. Games are not like movies or music. Hell movies are still being released on disc. I expect games to be on disc for a good 5-10 years longer than movies are. CDs will be phased out first, which is currently happening. Next will be movies. Maybe in 15-20 years we'll be ready to phase out physical media games, but definitely not now.