Now with nearly everyone with high-enough speed internet access, such physical distribution of software is antiquated. And not a good business model.
It's a great business model. I quite like the nice printed books of artwork and stories I got with older games. Reading that stuff in a PDF is damn boring. Give me a dead tree, please (but remember to plant a replacement).
3) It costs $10 more to get Internet access without also getting cable.
You're confused. It actually costs $30-$50 less to get internet access without also getting cable, because cable + internet is upwards of $90 after tax, while internet is under $60, even after the stupid "for the first 12 months" bullshit.
Living on Earth may be expensive, but it includes an annual free trip around the Sun.