I will go with what I said before.
Do I see optical media coming to an end? Yes I do.
Do I see physical media coming to an end any time soon? No I don't.
The reason for that is you can not share DL media. Also the DL media quality is by far less than that of Blu-Ray or other physical media. What I see it being replace by is some type of flash memory as that starts getting driven down in price more and more. It will just become cost effect to sell something like a flash drive full of the information that can hold more data for a cheaper price.
There's also the inconvenience factor of having to wait for the download to complete. It's funny. Jobs rationale for people wanting to buying MP3's off iTunes was the convenience of being able to get a song immediately - instant gratification. He was right. Add to this the fact you no longer had to buy a whole album to get that one song you want and you can see the model's appeal.
When it comes to movies though, the convenience is countered by the download time. I now have to wait 1-3 hours when I could just go to Best Buy and buy the actual DVD on sale at a cheaper price.