Yes. I agree. But again, look at the movie sector: You can go to cinema, buy the DVD and watch TV. Cinema and TV will not ship a physical product and many people are happy with it. And they buy only their favorite movies on DVD.

The same will happen with games.

Steam works fine now even without physical products. They have weeks with very low prices, some sales and they sell a lot then. I have read some articles about it. They have so much success this way that they even told, games are too expensive to be successful. And this will be solved with such subscription channels. Steam is only the beginning and could be a subscription channel as well in the future.

By the way: Most business software already comes without physical product. I sell my software with only delivering codes to unlock. I bought Modo, ZBrush and other tools as downloads only. It is called software and does not need space in my room, only on hdd.
If I want something physically then I buy a book and I indeed do that a lot.