Missing some points here.
When I go into Game and look at the second hand games 95% of them are trash titles that should never have been launched in the first place. For every AAA title you may find there will be 50 Z list titles around it.
So in the long run it may mean the second hand game market dries up a little but it could also mean that if folks are more choosy about what they buy (as it seems by the second hand racks a lot of people buy crappy games a lot) then the games developers are going to have to make sure their titles are the ones people are going to really want to buy.
So it may mean less games released a year but the quality could improve a lot more. I'm all for that.
As for doing away with optical media I'm 50/50 on this. I knew there was a good chance that MS would rather die than out a BD drive in a Xbox but they could have used a modified HD-DVD drive as the tech was theirs and I bet there is still a warehouse in eastern Europe somewhere full of old HD-DVD drives that are bought and paid for.
I still use my 360 as my main DVD drive but I have never played an audio CD in it. Not really suitable. I've always fancied going back to cartridges since the days of my Morrowind DVD constantly playing up on my original Xbox.