I don't like the idea of buying digital music or movies (downloading instead of buying physical copies), I like to own the CD/DVD/blu-ray copy of something then I can do whatever I want with it. That said, I also like to have the physical copy of games but I do download them from time to time; what with the PSN store and more recently iPod app store. When I have a choice I'll buy a game from a shop, unless there is a very good reason to download it. For example with Left 4 Dead, I bought it from Steam because it was about £5 cheaper than in store.. although if I'd preordered it from Amazon I could have saved even more D: but oh well. Plus Steam is very good with downloads, if I want to play a game on a different PC I just login to my account and download the game, very easy.
The application "iFart" for the ipod app store has sold about 100k copies in 2 weeks, netting them I guess over $90,000 - not bad for the work they must have put into it (an hour or 2) =/ There's a lot of money to be made with simple applications like that.