Yeah, I have switched completely to digital over the last twelve or so months. The main reasons are:
Price - I was purchasing the majority of my games digitally before it happened, but the Steam Xmas sale just gone utterly and ruthlessly decimated any remaining thoughts of buying locally. Being in Australia, the price difference is really noticeable with the local software retail marked up massively. I got the Dragon Age digital deluxe edition at release for about half what the regular edition cost in stores here.
I was near a large mall between meetings the other day with time to spare, so I wandered into the local EB Games. They had a sale on - but everything I was interested in I had already bought on Steam for nearly 25% - 40% of the price they were asking even on sale. I don’t see myself ever buying retail again, certainly not locally.
The only fly in the ointment is when publishers restrict online sales to certain regions, or even worse try and charge more in different regions. I either circumvent the region control with a proxy, or just ignore the game and move on - plenty of other stuff to play.
The only exception has been a few imports from the UK of cheap games either not available online (SMAC) or with the stupid region specific online pricing.
Ease of use - no discs! I also like autoupdating in Steam etc
Availability - A lot of the games I like are on Gamers Gate or are more niche - mostly strategy or euro RPG. A lot of these titles, except maybe for a few week window around launch, simply are not stocked in the local EB Games. They are definitely no where to be found in the local big box retailers. In the case of Risen it was actually banned here, but easily downloaded from Gamersgate.
Also, you people complaining about the download speeds, what sort of whacked up ISP do you have? :-) My local ISP runs a Steam mirror, so I get STEAM downloads at about 1.5Mb/s, largely cap/quota free. So about an hour for most modern games, two if it is a monster. For all those that say “well its only 30 minutes to the shop” - not if it is 6pm at night and they are closed!! Plus we have antiquated trading regulations, so most of them are shut all Sunday.