Damn well better be a difference between physical and download games.
Is there now? Nope. When Devil May Cry came out last week it was in the PS store the same day as physical copies and was the same price. Also, older games cost more to buy in the PS Store and Xbox Marketplace than they do in stores.
Publishers will cut out physical stores as much as possible but people are naive to think they will drop the price to just make the same margin on games as they do now. They are going to keep prices the same and pocket that extra money.
I am OK with that if it means we don't lose another THQ.