Online distribution sucks cuz u can't sell the game used after you're done. Selling stuff on Ebay is how I can afford to play games. Multiplayer focused games, I have to keep. But most games are still singleplayer adventures, and like a movie, you don't really replay the game right away. You might play it again after a few months, or a year or two. But why own a game for that?
I think a good solution to combat piracy would be online distribution, as you said. But also make sure games can be traded through this online distribution system. Let's say I play Half-life 2 on Steam. I'm done with it, and I sell my "copy" to another Steam user for whatever price I can get. Now that he has it, I can no longer play it. Seems good to me. Right now I have Half-life 2 but I never play it, But since I downloaded it from Steam, it's just sitting there.
This would be absolutely ideal to me because Ebay is a clumsy, low-tech system of transferring games to others. I have to ship the physical product, pay Ebay commisions, setup auctions, and put stuff in the mailbox. It's all very ancient stuff to be doing when we're dealing with 0s and 1s, u know?
Adventures of a video game mercenary
http://virtualmerc.blogspot.com