I have never seen so many people argue so hard for a company to implement a more expensive option with lower quality.
Some argue we could get software on flash drives. DVDs, like CDs, laserdiscs, and records before them, can literally be pressed with intact information in a matter of seconds. Even if the physical components of a flash drive cost the same as a DVD, it would take more than twice as long to manufacture and then you would have to put the data onto the drive (can't have the data already stored in memory before the components are put together). This means higher production costs and lower numbers.
Okay, what about downloads? We all download from iTunes, but this is higher cost ($1 per song) and lower quality (MP3, AAC is compressed, data is lost). Not to mention the limited availability. Then you are limited by bandwidth. How long does it take to get your song? I can walk into a CD shop and buy literally gigabytes of data in 1 second (talk about bandwidth).
Then there is the issue of internet availability. The internet is not free. You have to pay to have it in your home. You pay for it in higher product prices at places that "give" it to you. You have to buy additional hardware for it (routers, cables, etc). And, it is not everywhere. Want to work on the road (literally, like on a car trip), you can't get a hot spot. Okay, you can use 3G, but that's an additional cost (cell receiver in computer, data plan paid for monthly). Plus, 3G is definitely not everywhere.
Lastly, you are relinquishing some of your right to your own system and software when you get it solely from the cloud. All the free online data storage that I have seen is a relatively small amount there to entice you to buy greater storage space. Something you would need if anything you ever wanted to store on disc needed to go online. Without a physical copy, you are at the mercy of someone else's server (the company trying to make money off of you) whenever you have a problem and need to reinstall or migrate your software. Software companies would love it if people did it this way. Then you would really be purchasing a license to use the software. Something they could demand you renew, and take away if they so choose. I like it when I pay full price for a product, I actually get it, not some glorified rental.